Residential Satisfaction for a Continuum of Households: Evidence from European Countries

31 Pages Posted: 30 Mar 2018

See all articles by Riccardo Borgoni

Riccardo Borgoni

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Alessandra Michelangeli

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS); Università degli Studi di Milano-Bicocca - Center for European Studies (CefES); Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS)

Federica Pirola

University of Milan - Bicocca

Date Written: March 28, 2018

Abstract

Residential satisfaction depends on housing and neighborhood conditions in addition to housing cost affordability. To determine the relative importance of these factors, their average effect is usually estimated using sample data, eventually split in sub-samples in order to represent social classes. A concern about the division of households into groups is that, as groups are modified or group assignment change, results of quantitative analysis applied to such data can dramatically change. This paper follows a subjective well-being approach to study residential satisfaction. We propose a novel empirical strategy independent of the concept of social class, to estimate how the effect of drivers of residential satisfaction change on continuous according to households' income.

We apply our methodology to investigate residential satisfaction in 23 European countries using 2012 EU-SILC module on housing conditions. Our results show that: (i) in Europe residential satisfaction is driven first by housing-specific characteristics, followed by neighborhood conditions and individual/household characteristics; (ii) the probability to be satisfied or very satisfied strongly differs across countries, anything else being equal; (iii) residents with different monetary resources attach importance to particular determinants of residential satisfaction.

Keywords: housing; subjective well-being; Europe; EU-SILC Survey

JEL Classification: R11; R21

Suggested Citation

Borgoni, Riccardo and Michelangeli, Alessandra and Pirola, Federica, Residential Satisfaction for a Continuum of Households: Evidence from European Countries (March 28, 2018). University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 378, Available at SSRN: https://ssrn.com/abstract=3151414 or http://dx.doi.org/10.2139/ssrn.3151414

Riccardo Borgoni

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Alessandra Michelangeli (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

U6 Building
Viale Piero e Alberto Pirelli, 22
Milano, 20126
Italy

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, 20126
Italy

Federica Pirola

University of Milan - Bicocca ( email )

Via Bicocca degli Arcimboldi, 8
Milano, Milano 20126
Italy

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