Modern societies are facing unprecedented changes in their ethnic composition. Increasing ethnic diversity poses critical new challenges as people interact with new cultures, norms, and values, or avoid such encounters. Heated academic and political debates focus on whether and how changes in ethnic composition affect societies and local communities. Yet, there is insufficient scientific evidence of how living in a more diverse society affects individuals' well-being and health. The aim of this study is to test the extent to which increasing neighbourhood ethnic diversity affects individuals' subjective health and well-being and objective stress levels as measured by allostatic load. We analyse a large panel data set containing over 47,000 ...