Iterative proportional fitting for reweighting input data in SOUTHMOD microsimulation models
This note describes how the counterfactual datasets in the working paper by Lastunen et al. (2021) have been reweighted, for each country analysed, to the ‘pre-crisis’ time point of 31 March 2020. The procedure consists of five main steps. The note forms part of a series of technical notes that complement the working paper.
The reweighting procedure recalibrates the survey weights in each input dataset so that the weighted population totals correspond to the estimated population totals and demographic profiles in early 2020. It holds constant the labour market profiles as enumerated in the input data.
The re-based survey weights can then be merged into the original input datasets and these datasets can be used as a basis for applying the ‘COVID-19-induced’ labour market adjustments.