A Practical Guide for the Computation of Domain-Level Estimates with the Socio-Economic Panel (and Other Household Surveys)
Timo Schmid and
Carsten Schröder ()
No 1055, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)
There is a huge interest in deriving and comparing socio-economic indicators across societal groups and domains. The indicators are usually derived from population surveys like the German Socio-Economic Panel (SOEP) by direct estimation. Small sample sizes in the domains can limit the precision of these estimates. For example, while SOEP may be a suitable database for determining mean income in Germany, it is unclear whether this also applies to smaller domains (for example, women in Berlin). Here we show SOEP-based applications of Stata’s fayherriot package (Halbmeier et al., 2019). This package implements the Fay-Herriot model (Fay and Herriot, 1979), a small-area estimation technique designed to improve the precision of domain-level direct estimates using domain-level covariates from auxiliary datasets.
Keywords: Disaggregated indicators; Small area estimation; Fay-Herriot model; Socio-Economic Panel (search for similar items in EconPapers)
JEL-codes: C13 C31 C51 C87 (search for similar items in EconPapers)
Pages: 11 p.
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp1055
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