Estimation of the Departmental Female Employment Rate: Towards a New Strategy Based on Combining Spatial and Non-spatial Small Area Estimators

Abstract

Abstract Local statistics are in high demand in almost all countries due to their relevance for public policy monitoring and evaluation, decision-making, and strategic planning. However, traditional sources of local statistics, such as general censuses, administrative statistics, and national and local surveys, have limitations. This has led to the development of several techniques for estimating parameters over small areas. In this article, we use both spatial and non-spatial estimators for small domains to estimate the local employment rate of women in Algeria. We find that the empirical spatial estimator is the most appropriate and efficient estimator as more spatial correlations are considered. We also find that an approach based on the combination of spatial and non-spatial small area estimators is very beneficial because it allows for obtaining efficient estimates with lower Root Mean Squared Errors (RMSEs). This finding is significant for Algeria and similar countries, where traditional sources of local statistics are limited. The combination of spatial and non-spatial estimators can provide more accurate and reliable estimates of local statistics, which can be used to inform public policy and decision-making.