Adding New Dimensions
2021
This chapter shows how implementing new dimensions into the microsimulation model. As examples, we add two dimensions that can hardly be implemented in a classical projection model: the labour force participation and the sector of activity (formal/informal). Those modules are implemented through statistical modeling using regression parameters. They use as predictors individual characteristics, such as age, sex, region, education, and for women, a binary variable indicating if she gave birth to a child within the last five years. Those two new variables are thus dynamically implemented, as assumptions on fertility have a direct impact on their outcomes.
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