An Efficient Estimation of Local Area Unemployment Rate Based on Small Area Estimation

소지역 추정법을 이용한 효율적인 지역 실업률 추정

Kim, Soo-Taek

  • Received : 20111100
  • Accepted : 20111100
  • Published : 2011.12.31


Small area estimation has received significant intention in recent years due to a growing demand for reliable local area statistics. Traditional area-specific direct estimates based solely on sample survey data in the areas of interest do not provide adequate small area precision; however, design-based indirect local area estimators borrow strength from sample observations of related areas to increase the effective sample size. Design-based indirect estimation methods such as synthetic and composite estimators are considered to adjust local area unemployment rate estimates in the Korean Economically Active Population Survey. This study suggests an efficient alternative to minimize the cost to construct the unemployment rate of a local area through simulation under the condition that we can maintain a certain level of CV for the estimates. We obtained the results that the composite estimators using a sample size greater than 10 are more stable and significant at the level of CV 25% in our design scheme.


Small area estimation;composite estimator;coefficient of variation(CV);simulation


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