Empirical analysis of data drawn from the European Social Survey reveals that-after individual characteristics are controlled for-women engaging in market work and housework have similar life satisfaction levels. Complementing the micro-level data from the survey with country-level variables, namely GDP per capita and gender inequality (measured by the World Economic Forum's Global Gender Gap Index, GGGI), we estimate a multilevel regression model to shed light on the contextual factors of the life satisfaction of women in Europe. We find that working women's well-being relative to housewives is greater in countries where the GGGI indicates a smaller gender gap, i.e. where women are in a better position in terms of equality with men in the public domains. We interpret this finding to mean that the so-called 'paradox of declining female happiness' is in part due to persistent gender roles which appear to have a larger impact on the well-being of working women.