1. A new indicator for nowcasting employment subject to social security contributions in Germany.
- Author
-
Hutter, Christian
- Subjects
SOCIAL security ,AUTOREGRESSIVE models ,HEALTH insurance ,EMPLOYMENT ,FORECASTING - Abstract
Contrary to the number of unemployed or vacancies, the number of employees subject to social security contributions (SSC) for Germany is published after a time lag of 2 months. Furthermore, there is a waiting period of 6 months until the values are not revised any more. This paper uses monthly data on the number of people subject to compulsory health insurance (CHI) as auxiliary variable to better nowcast SSC. Statistical evaluation tests using real-time data show that CHI significantly improves nowcast accuracy compared to purely autoregressive benchmark models. The mean squared prediction error for nowcasts of SSC can be reduced by approximately 20%. In addition, CHI outperforms alternative candidate variables such as unemployment, vacancies and industrial production. [ABSTRACT FROM AUTHOR]
- Published
- 2020
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