Spatio-Temporal Analysis of Regional Unemployment Rates
This study aims to analyze the methodologies that can be used to estimate the total number of unemployed, as well as the unemployment rates for 28 regions of Portugal, designated as NUTS III regions, using model based approaches as compared to the direct estimation methods currently employed by INE...
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| Format: | Article |
| Language: | English |
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Instituto Nacional de Estatística | Statistics Portugal
2018-10-01
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| Series: | Revstat Statistical Journal |
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| Online Access: | https://revstat.ine.pt/index.php/REVSTAT/article/view/255 |
| _version_ | 1817999486690000896 |
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| author | Soraia Pereira Feridun Turkman Luís Correia |
| author_facet | Soraia Pereira Feridun Turkman Luís Correia |
| author_sort | Soraia Pereira |
| collection | DOAJ |
| description |
This study aims to analyze the methodologies that can be used to estimate the total number of unemployed, as well as the unemployment rates for 28 regions of Portugal, designated as NUTS III regions, using model based approaches as compared to the direct estimation methods currently employed by INE (National Statistical Institute of Portugal). Model based methods, often known as small area estimation methods (Rao, 2003), “borrow strength” from neighbouring regions and in doing so, aim to compensate for the small sample sizes often observed in these areas. Consequently, it is generally accepted that model based methods tend to produce estimates which have lesser variation. Other benefit in employing model based methods is the possibility of including auxiliary information in the form of variables of interest and latent random structures. This study focuses on the application of Bayesian hierarchical models to the Portuguese Labor Force Survey data from the 1st quarter of 2011 to the 4th quarter of 2013. Three different data modeling strategies are considered and compared: Modeling of the total unemployed through Poisson, Binomial and Negative Binomial models; modeling of rates using a Beta model; and modeling of the three states of the labor market (employed, unemployed and inactive) by a Multinomial model. The implementation of these models is based on the Integrated Nested Laplace Approximation (INLA) approach, except for the Multinomial model which is implemented based on the method of Monte Carlo Markov Chain (MCMC). Finally, a comparison of the performance of these models, as well as the comparison of the results with those obtained by direct estimation methods at NUTS III level are given.
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| first_indexed | 2024-04-14T03:09:37Z |
| format | Article |
| id | doaj.art-8a6af3b0304e4f5f925f602ea3965d74 |
| institution | Directory Open Access Journal |
| issn | 1645-6726 2183-0371 |
| language | English |
| last_indexed | 2024-04-14T03:09:37Z |
| publishDate | 2018-10-01 |
| publisher | Instituto Nacional de Estatística | Statistics Portugal |
| record_format | Article |
| series | Revstat Statistical Journal |
| spelling | doaj.art-8a6af3b0304e4f5f925f602ea3965d742022-12-22T02:15:38ZengInstituto Nacional de Estatística | Statistics PortugalRevstat Statistical Journal1645-67262183-03712018-10-0116410.57805/revstat.v16i4.255Spatio-Temporal Analysis of Regional Unemployment RatesSoraia Pereira 0Feridun Turkman 1Luís Correia 2Universidade de LisboaUniversidade de LisboaInstituto Nacional de Estatística This study aims to analyze the methodologies that can be used to estimate the total number of unemployed, as well as the unemployment rates for 28 regions of Portugal, designated as NUTS III regions, using model based approaches as compared to the direct estimation methods currently employed by INE (National Statistical Institute of Portugal). Model based methods, often known as small area estimation methods (Rao, 2003), “borrow strength” from neighbouring regions and in doing so, aim to compensate for the small sample sizes often observed in these areas. Consequently, it is generally accepted that model based methods tend to produce estimates which have lesser variation. Other benefit in employing model based methods is the possibility of including auxiliary information in the form of variables of interest and latent random structures. This study focuses on the application of Bayesian hierarchical models to the Portuguese Labor Force Survey data from the 1st quarter of 2011 to the 4th quarter of 2013. Three different data modeling strategies are considered and compared: Modeling of the total unemployed through Poisson, Binomial and Negative Binomial models; modeling of rates using a Beta model; and modeling of the three states of the labor market (employed, unemployed and inactive) by a Multinomial model. The implementation of these models is based on the Integrated Nested Laplace Approximation (INLA) approach, except for the Multinomial model which is implemented based on the method of Monte Carlo Markov Chain (MCMC). Finally, a comparison of the performance of these models, as well as the comparison of the results with those obtained by direct estimation methods at NUTS III level are given. https://revstat.ine.pt/index.php/REVSTAT/article/view/255unemployment estimationmodel based methodsBayesian hierarchical models |
| spellingShingle | Soraia Pereira Feridun Turkman Luís Correia Spatio-Temporal Analysis of Regional Unemployment Rates Revstat Statistical Journal unemployment estimation model based methods Bayesian hierarchical models |
| title | Spatio-Temporal Analysis of Regional Unemployment Rates |
| title_full | Spatio-Temporal Analysis of Regional Unemployment Rates |
| title_fullStr | Spatio-Temporal Analysis of Regional Unemployment Rates |
| title_full_unstemmed | Spatio-Temporal Analysis of Regional Unemployment Rates |
| title_short | Spatio-Temporal Analysis of Regional Unemployment Rates |
| title_sort | spatio temporal analysis of regional unemployment rates |
| topic | unemployment estimation model based methods Bayesian hierarchical models |
| url | https://revstat.ine.pt/index.php/REVSTAT/article/view/255 |
| work_keys_str_mv | AT soraiapereira spatiotemporalanalysisofregionalunemploymentrates AT feridunturkman spatiotemporalanalysisofregionalunemploymentrates AT luiscorreia spatiotemporalanalysisofregionalunemploymentrates |