City Life: Rankings (Livability) Versus Perceptions (Satisfaction)

I investigate the relationship between the popular Mercer city ranking (livability) and survey data (satisfactions). Livability aims to capture objective quality of life such as infrastructure. Survey items capture subjective quality of life such as satisfaction with city. The relationship between objective measures of quality of life and subjective measures is weak (correlation of about 0.4). Trust is highly correlated with both, objective livability (0.8) and subjective satisfaction with city (0.65). I postulate to pay more attention to subjective indicators of quality of life. After all, what matters is what we perceive, not what is out there.

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