Hierarchical Bayesian models for the estimation of unemployment rates in small domains of the italian labour force survey

Enrico Fabrizi
In this paper we introduce shrinkage estimators for the estimation of the Unemployment rate in small domains of the Italian Labour Force Survey. The proposed estimators are based on Hierarchical Linear Mixed Models and on the borrowing strength on both time series and cross section. Auxiliary information from source external to the Labour Force Survey is not considered. A Hierarchical Bayesian approach is adopted, in which models are solved by means of MCMC sampling algorithms....