1. On building statistical indicators at Labour Market Area level
Daniela Ichim
Istat, Department of Production Statistics

2. Structural Business Statistics Different geographies
Summary
Structural Business Statistics
Different geographies
e.g. Labour Market Areas
Integration of statistical registers Frame-SBS, Asia-UL e RACLI-UL
Issues on deriving economic indicators
Conclusions
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

3. Structural Business Statistics
COMMISSION REGULATION (EC) No 251/2009
Series 2B
Series 2C
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

4. Territorial partitions
Administrative partitions
NUTS NUTS LAU  N 20
110
8092
Min 1 74
Mean
5.5
404.6
Max 12
1544
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

5. Territorial partitions
Functional / statistical partitions
Functional
Metropolitan areas
Health care system
Justice system
Touristic system
Statistical
Labour market areas
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

6. Labour Market Areas definition
3. Fine tuning
1. Preliminary treatment
2. Partition
4. Analysis
5. Dissemination
6. Dissemination
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

7. Labour Market Areas (LMA)
Partitions of the territory, starting from elementary units (LAU)
No constraint on administrative boundaries. # 1 2 3 4 5 6 7
NUTS2
555 54
NUTS3
426
163 19
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

8. LMA - statistics
Commuting flows from residence to work place (census, administrative data, multiple sources)
- Residents
- Employment
Education
Age …
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

9. SBS-LMA QUESTION Series 2B Series 2C
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

10. Aim: Regionalisation of SBS Economic indicators
SBS-LMA
Aim: Regionalisation of SBS
Economic indicators
Different administrative partitions (NUTS3)
Functional and statistical partitions (LMA)
The common key is the elementary unit (LAU).
Is it possible to transfer the economic measures at local level? How? Advantages and drawbacks?
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

11. Regionalisation of SBS – example of usage
SBS-LMA
Regionalisation of SBS – example of usage
DL 83/2012, art.27
Strategic plan built on two intervention models:
on COMPLEX industrial crisis areas [DL 83/2012, art.27.8 → DM ]
on NON-COMPLEX industrial crisis areas [DL 83/2012, art.27.8 bis→ DM ]
Prevailing production specialisation (industrial Census 2011)
Combination of employment & unemployment rate (ref.2014)
Employment & unemployment variation compared to the average
Labour productivity 2012 (added value per employed person)
Traditional administrative borders do not fit to these objectives as they portray the organisation of community management, not labour market flows & borders.
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

12. Aim: Regionalisation of SBS Economic indicators
Elementary unit LAU
Aim: Regionalisation of SBS
Economic indicators
Different administrative partitions (NUTS3)
Functional and statistical partitions (LMA)
The key is the elementary unit (LAU).
LAU NUTS3
LAULMA
etc
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

13. Istat register Frame-SBS since 2011
Economic indicators
Istat register Frame-SBS
since 2011
Turnover, Wages and salaries, Value added, etc
4mln enterprises
no information on the interaction between enterprises and territory: only headquarters
 Turnover, Value added, etc are “assigned” to the headquarter region.
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

14. Territorial characteristics of enterprises
The link between enterprises and territory may be represented by their local units (LU).
Lombardia: 3% of the LU are located outside.
Italy: the percentage ranges from
0.3% (Sardinia) to
6.5% (Lazio).
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

15. Territorial characteristics of enterprises
Reduced number, significant economic impact #
Employees
Turnover
Value added
Labour Cost
Enterprises
100.00
Enterprises with LU
4.92
35.16
53.80
48.92
55.21
Enterprises with LU in different regions
0.68
19.48
36.27
32.28
34.74
Enterprises with LU in different provinces
1.38
23.79
41.50
37.27
41.00
Enterprises with LU in different LMA
1.83
25.91
43.47
39.34
43.61
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

16. Enterprise  LU (a top down approach) Using auxiliary information
Elementary unit - LAU
Enterprise  LU (a top down approach)
Using auxiliary information
a) ASIA-UL – structural and employment at LU level
b) RACLI-UL– labour cost at LU level
Issues:
a) economic theory
b) statistical method
c) quality
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

17. Enterprise  LU (a top down approach) Issues: economic theory
Indicators
Enterprise  LU (a top down approach)
Issues: economic theory
Is it possible/reasonable to transfer the economic measures at local level?
Turnover, value added, exports, gross operating margin, stocks, production value - same treatment?
Business functions: production, logistics, trade, etc
Proxies: establishment characteristics (NACE, characteristics of employees)
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

18. Enterprise  LU (a top down approach) Issues: method
Indicators
Enterprise  LU (a top down approach)
Issues: method
- Straightforward allocation: #of employees, LC, etc
- Complex allocation
Ideally,
a) proportional
b) including relationships between variables, e.g. Manual on regional accounts methods
Enterprise
LU_1
LU_2 …
LU_n
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

19. Straightforward allocation: #of employees
Indicators
Straightforward allocation:
#of employees
- Proportional allocation:
Min Q1
Median
Mean Q3
Max
-22.6
-11.8
-8.3
-6.8
-3.9
18.0
Method
Min Q1
Median
Mean Q3
Max
# LU
-82.51
-35.86
-21.26
-23.83
-7.889
41.42
# empl
-59.63
-26.02
-15.61
-16.71
-7.399
34.37
# LC
-54.56
-24.62
-14.47
-15.48
-6.875
33.27
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

20. Enterprise  LU (a top down approach) Issues: quality
Indicators
Enterprise  LU (a top down approach)
Issues: quality
There is no benchmark.
Is it reasonable to expect coherent results with SBS statistics (produced with respect to headquarters)?
- By construction:
Stone algorithm set up at micro level.
- a-posteriori adjustments
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

21. Regionalisation of SBS is necessary for improved local policies.
Conclusions
Regionalisation of SBS is necessary for improved local policies.
LMAs represent an important territorial partition as they describe the labour market dynamics.
Data integration may be a solution, but further improvements are needed:
- classify the relationships between unit types
- classify the relationships between variables
- identify methods for deriving new variables (depending on both units types and input variables)
LAU-estimation phase – alternatives?
On building statistical indicators at Labour Market Area level – Daniela Ichim, Southampton, August 2017

22. Thank you!