What is the "neighbourhood" in neighbourhood satisfaction? Comparing the effects of structural characteristics measured at the micro-neighbourhood and tract levels.

Using the neighbourhood sub-sample from the American Housing Survey for 1985, 1989 and 1993, this study tests whether the social context of the local micro-neighbourhood or of the broader census tract more strongly affects neighbourhood satisfaction. It is found that the local context of the micro-neighbourhood generally has a stronger effect on residents' reported satisfaction. In contrast to studies aggregating to larger units, it is found that greater residential stability in the micro-neighbourhood increases reported neighbourhood satisfaction. A low socioeconomic status of the local micro-neighbourhood decreases neighbourhood satisfaction more than does the socioeconomic status of the surrounding tract and this effect is amplified in low-income tracts. Whereas prior evidence is mixed when aggregating perceptions of crime to larger units, a robust negative effect on satisfaction is found when aggregated to the micro-neighbourhood.