This study examined the role of socioeconomic factors (such as education and employment) and psychosocial factors (such as social support, coping and attitude towards the future), in the relationship between migration, self-reported health and life satisfaction among young adults in a 31-year follow-up study of the Northern Finland Birth Cohort 1966 conducted in 1997-1998. The associations between these outcomes and socioeconomic and psychosocial factors were first examined, stratified by gender and migration, for sample members at 23 and at 31 years of age. Regression modelling was then used to study the association between migration and the outcomes after adjusting for specific socioeconomic and psychosocial factors. Results of binary logistic regression models showed that, although there was more dissatisfaction with life and more poor self-reported health in rural areas, the association was derived mostly from the mediation of unemployment, poorer education, lack of social support, passive coping strategies and greater pessimism among people living in rural areas. It is concluded that special attention should be paid to improving living conditions (educational and vocational opportunities) and enhancing the psychosocial resources of young adults in rural and remote areas.