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CPS2128  Wlodzimierz Okrasa et al.



                              Subjective and community wellbeing interaction
                                  in multilevel spatial modelling framework
                                     Wlodzimierz Okrasa, Dominik Rozkrut
                                                 Statistic Poland

                  Abstract
                  Analyzing the cross-level interaction between individual and community well-
                  being  requires  joint  involvement  of  both  'vertical'  and  'horizontal'
                  perspectives.  While multilevel modelling separates the effects resulting from
                  personal  characteristics  from  those  resulting  from  community  features,
                  accounting for spatial variation and geographic membership prove that space
                  and place matter too. To this aim, the explicitly spatial multilevel model is
                  developed  that  allows  to  identify  both  types  of  effects  (space  and  place-
                  related) using the hierarchical (nested) data structure, with the lowest level
                  administrative  areas  (NUTS5  units/  Nomenclature  of  Units  for  Statistical
                  Purposes),  communes/gminas)  as  the  aggregate-level  context  for  its
                  members/residents. There are two kinds of well-being measures used in the
                  ensuing analysis:  individual (subjective) well-being measure derived from the
                  nation-wide Time Use Survey data, replaced occasionally by 'life satisfaction'
                  type  of  selfreported  measures,  and    multidimensional  index  of  local
                  deprivation composed of eleven domain-scales.  An empirical application of
                  the multilevel spatial modelling (which constitutes the major portion of the
                  remaining part of the paper) is preceded by searching for main factors and
                  auxiliary covariates affecting individual (subjective) well-being, while looking
                  after the issue of endogeneity. When expressed in a way analogous to so-
                  called basic 'life-satisfaction equation', subjective well-being might be treated
                  as a function of residents' income and hours of work vis-a-vis the impact of
                  community  well-being  (or  deprivation)  through  employing  causal  type  of
                  reasoning using path analytic version of structural model. Another important
                  factor  at  the  community  level  (referred  often  to  social  cohesion)  is  social
                  capital the relative impact of which (weighted against individual income) is
                  checked using the 'compensating variation' approach. The spatial multilevel
                  modelling is finally extended by an attempt to assess the spatial interaction
                  effect on the cross-level relationships. Its inclusion is recommended in the
                  concluding this paper discussion suggesting a more systematic efforts toward
                  a spatially integrated approach to such a type of modelling problems.

                  Keywords
                  spatial analysis; measuring subjective well-being; community deprivation;
                  social capital

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