Abstract: We study the effect of residential segregation by race on wellbeing. Wellbeing is measured as self reported happiness (subjective wellbeing). Segregation is measured at three levels of aggregation. We use the 2010 Behavioral Risk Factor Surveillance System containing information about over 125 metropolitan areas and over 125,000 people living there, and measure segregation using exposure/isolation index based on census data at metropolitan level. Second dataset, 1978-2012 General Social Surveys surveyed respondents about race at block level. Third dataset, the Quality Of American Life surveyed respondents about race at neighborhood level. There are conflicting theories about the effect of segregation on wellbeing, but we know surprisingly little about the actual net effect. Sociologists tend to assume, without testing, that segregation has a negative effect because it is associated with concentrated poverty, exclusion, lack of opportunity, and crime. The negative effect is argued for minorities, and especially blacks. Our results, however, are consistent across all racial groups. We find that whites, blacks, and Hispanics are happier among their own race. keywords: segregation, race, subjective wellbeing (SWB), happiness, life satisfaction, sociobiology, the Behavioral Risk Factor Surveillance System (BRFSS), General Social Survey (GSS) Geographic segregation of people along racial (and economic) lines is one of the defining features of American cities (e.g., Massey and Denton 1993, Jargowsky 1997, Reardon et al. 2015). From 1970 to 2010, number of segregated metropolitan areas has declined, but the degree of segregation changed little and still about a third of blacks live in highly segregated areas (Massey and Tannen 2015). In sociology, segregation is commonly equated with disadvantage and assumed to reduce wellbeing (e.g., Massey and Denton 1993). But does it? Nobody has tested it directly. For instance, Massey et al. (1987) claim that segregation affects social and economic wellbeing–yet they do not measure social and economic wellbeing directly by asking people whether they are satisfied with their lives. Stiglitz et al. (2009), Helliwell et al. (2012), and Easterlin (2013) have recently asked social scientists and policy makers to use measures of happiness to better understand social processes and draft informed policies. We propose to use a happiness yardstick to evaluate the effect of segregation on the overall human wellbeing. Are we happier among our own race? 1Postmes and Branscombe (2002) studied segregation and wellbeing among 200 African Americans, but their study, like most psychological studies, is not representative of the the population. Vogt Yuan (2007) studied wellbeing in a representative sample but measured it differently from what is a standard in happiness literature and used data from Illinois only. All similar studies, cited in Vogt Yuan (2007), investigate the relationship within a small area, usually one metropolitan area, and they mostly study mortality, sometimes depression, but never happiness/wellbeing. In addition, unlike all other studies, we analyze racial makeup of an area at three levels of aggregation: metropolitan area (study 1), block (study 2), and neighborhood (Study 3). Currently, in a working paper, Herbst and Lucio (2014) are revisiting the issue as well, but take economics perspective on the topic, use smaller dataset, and focus on blacks only.