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STS563 Pete Jones
            an  integrated  LMS/PCS  was  worth  pursuing  for  more  detailed  statistical
            testing.
                A  key  milestone  for  ONS  social  survey  and  population  statistics
            transformation is to deliver a large scale LMS/PCS test in 2020. The aim of this
            test  is  to  produce  population  estimates  and  labour  market  statistics  for
            comparison  with  official  estimates  at  national  level.  Early  simulations  have
            identified  a  potential  approach  based  on  a  two-stage  stratified  clustered
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            design. Under this design, small areas (ONS output areas)  are selected from
            strata  at  random  as  the  primary  sampling  unit.  Within  the  output  areas
            selected, a fixed number of addresses will be randomly selected to take part
            in the survey. The stratification is based on assigning each output area into 1
            of 6 strata for over-coverage and under-coverage using the minimum variance
            stratification  method.  The  design  variable  for  over-coverage  is  based  on
            measuring numbers of people moving into and out of addresses in the area.
            For under-coverage we assessed a number of predictors, including migration
            within the area, ethnicity, and other evidence of administrative data activity
            not  captured  on  the  SPD.  Using  principle  components  analysis,  we  have
            developed a composite design variable to stratify for under-coverage derived
            from these variables. An initial assessment of model fit gives an R2 value of
            0.44 for the over-coverage measure and 0.48 for under-coverage. These are
            broadly comparable with the model used to predict Census non-response as
            part of the 2011 hard-to-count index (0.47) . Sample sizes for the 2020 test
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            will be calculated once the impact of a stratified design is fully understood for
            the precision of labour market statistics.

            4.  Discussion and Conclusion
                Initial  operational  tests  for  an  integrated  LMS  /  PCS  survey  have
            demonstrated potential for combining survey questions on labour market and
            population coverage. Further research is needed before concluding that the
            proposed  design  will  produce  robust  statistical  outputs.  From  the  PCS
            perspective, an understanding of how response rates to a voluntary survey will
            impact the quality coverage assessment is needed. While the CCS, which is
            used  to  support  the  traditional  Census  estimation  framework  is  also  a
            voluntary  survey,  it  achieves  high  response  rates  (90%+)  on  the  basis  that
            respondents  associate  the  collection  with  the  mandatory  Census  that  is
            conducted a few weeks prior to the CCS. The proposed integrated LMS/PCS
            survey will undoubtedly achieve lower response rates, posing an increased risk
            of  bias  in  the  resulting  estimates.  Understanding  the  relationship  between
            survey non-response and registration on administrative data is of important
            consideration when evaluating the impact of lower response rates, and further
            work will be undertaken in this area. In addition, a method for adjusting over-
            coverage  within  the  dual-system-estimation  framework  is  also  needed  in
            preparation for the 2020 test.

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