Semiparametric empirical best prediction for small area estimation of unemployment indicators
The Italian National Institute for Statistics regularly provides estimates of unemployment indicators using data from the labor force survey. However, direct estimates of unemployment incidence cannot be released for local labor market areas. These are unplanned domains defined as clusters of municipalities; many are out-of-sample areas, and the majority is characterized by a small sample size which renders direct estimates inadequate. The empirical best predictor represents an appropriate, model-based alternative.