Which factors influence city quality-of-life perception: the interaction between city and life satisfaction. I. Shafranskaya D. Potapov A. Bozhya-Volya Higher School of Economics Abstract Quality-of-life estimation is considered to be not only the performance indicator for city management efficiency. In term of the city, it is the complex reflection of residential satisfaction both with the urban services quality and with various life domains. This study attempts to explore the nature of interactions between residential satisfaction with the urban services, the city and the life, which could help in determining of the urban policy priorities for the particular city of Perm. Key words Quality-of-life, city satisfaction, life satisfaction, urban services. Introduction It is generally accepted that the task of city management is increasingly becoming the creation of urban conditions sufficiently attractive for the current and potential residents. These conditions are could be evaluated as the quality of different urban services and thus city quality-of-life monitoring becomes an important issue of city managerial routine. City quality-of-life is considered to be viewed from two sides: as an objective estimation based on the factual measures of different city indicators or as the subjective individuals self-report on their satisfaction with different city services (Obulicz – Kozaryn, 2013). Several researches argue that the complexity of urban living environment can not be represented by a single measure, rank or index (Diener and Suh, 1997; Rogerson, 1999), especially in case when the reported growth of indices or ratings of a city does not correspond to the perception of the residents. This presumption motivates researchers to investigate the relationship between subjective measures of city quality-of-life deeper (Baldiccini and Checchi, 2009). Here the underlying assumption of subjective approach is that city quality-of-life could be considered as the individual’s subjective experience of dealing with different urban 1 services (Diener and Suh, 1997; Kahneman and Kruger, 2006), which finally could be expressed via the level of satisfaction with the city as a whole. Exploring the complex nature of city satisfaction Cummins (2000) argues that the subjective measures of city and life satisfaction inter-correlate and this is obvious – people who feel happy with their life conditions also tend to be satisfied with the conditions of the environment which surrounds them in life. Using the metaphor of ‘two sides of the city quality-of-life coin’ one could state the following: on the one hand to be satisfies with community environment, residents prefer to have sufficiently high level of urban services in healthcare, education, housing, employment, cultural and recreation resources, public safety, trade and transport infrastructure etc. On the other hand, residents’ satisfaction is largely determined by the variety of life domains (for example, family, income and different social, consumer, leisure, spiritual and environmental aspects). This raises the task of separation of residents’ overall satisfaction with the city, urban services quality and personal happiness perception (Jeffres and Dobos, 1995). To choose the most appropriate way of urban services improvement the city authorities need to put some priorities especially under the pressure of limited budget. Deciding these priorities both the perception of quality of urban services and the complex nature of city satisfaction should be taken into account. The study reported in this paper focuses on the analytical approach used to purify the estimates of correlation between the residents’ perception of urban services quality and city quality-of-life on the whole from the satisfaction with their life domains. This approach allows city managers to take advantage of more accurate estimations to tune urban policy. Research design and methodology The empirical research is based on the theoretical notion that city quality-of-life is affected by the satisfaction with urban services on the one hand and subjective perception of happiness on the other hand. We use the data from the residents’ satisfaction survey sponsored by local authorities in the city of Perm in order to estimate the residents’ satisfaction with the quality of urban services. The sampling procedure was carefully designed taking into account the spatial distribution of population in Perm. A structured sample of 1800 respondents was generated for the study and a face-toface survey method was used. The analytical approach assumed the model construction which related the urban services perceived quality, city overall satisfaction 2 and personal happiness perception. Path analysis was applied to separate the effects influencing the overall city satisfaction. Preliminary results The findings are interim. We managed to reveal the basic relationships between the model components, which are statistically significant. In order to explore the relationship deeper we intend to estimate the robustness of the results for different groups of residents specifying the socio-demographic and locational characteristics (e.g. – age, marital status, residential district and level of education). Practical implications From a managerial perspective we show how local authorities can use the model in order to prioritize the strategic arrays of city development increasing residents’ satisfaction. The results could provide an illustration of the determinants of subjective satisfaction with the city, that we assume are of great importance for the city policy makers. As the model purifies the influence of the individual’s life satisfaction influencing on the satisfaction with the urban services, the correlation measures provide the “net” estimations, which could help in prioritizing of city management tasks. Given this, our study can contribute to a better understanding and management of the major urban services that influence city quality of life perception. Differentiation of city satisfaction factors among various groups of residents (e.g. – by age or residential district) could allow to open prospects for justification of youth policy or more appropriate urban programs for diverse city districts. Originality / value The paper discusses the analytical framework that encompasses city quality-of-life measurement and monitoring tasks. REFERENCES 1. Balduccini, A., Checchi, D. (2009) Happiness and quality of city life: the case of Milan, the richest Italian city. – International Planning Studies, vol.14, 1. 25 – 64. 2. Cummins, R. (2000) Objective and subjective quality of life: an interactive model. – Social Indicators Research, 52, 55 – 72. 3. Diener, E., Suh, E. (1997) Measuring quality of life: economic, social and subjective indicators. – Social Indicators Research, 402, 189 – 216. 3 4. Epley, D. 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