Estimating Unemployment-Rates for Small Areas – A Simulation-Based Approach
The estimation of Austrian unemployment rates is based on data of the labour force survey (LFS). It is possible to calculate direct, design based estimates with fixed precision for population subgroups for which the sample size is known due to the sampling design.
Sometimes we are interested to estimate unemployment rates for population subgroups in which the sample size is random and often small. In this paper we conducted a simulation study to compare the performance of several model-assisted estimation methods with the direct estimator using auxiliary information from an administrative source when estimating unemployment rates for population subgroups. The results showed that if sample-sizes in
a subgroup are small, model-based estimators outperform the design-based estimator.
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