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Tracking employment shocks using mobile phone data.

Jameson L Toole1, Yu-Ru Lin2, Erich Muehlegger3

  • 1Engineering Systems Division, MIT, Cambridge, MA 02144, USA jltoole@mit.edu.

Journal of the Royal Society, Interface
|May 29, 2015
PubMed
Summary
This summary is machine-generated.

Mobile phone data can track mass layoffs and unemployment. Researchers used call detail records (CDRs) to identify affected individuals and predict economic changes, offering new insights into microeconomic behavior.

Keywords:
complex systemscomputational social sciencemobilitysocial networksunemployment

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Area of Science:

  • Socioeconomics
  • Data Science
  • Labor Economics

Background:

  • Traditional economic indicators often lack real-time granularity.
  • Observing the micro-level impacts of economic shocks is challenging.

Purpose of the Study:

  • To develop and validate methods for detecting economic shocks using mobile phone data.
  • To identify individuals affected by mass layoffs and predict aggregate unemployment rates.

Main Methods:

  • Utilized structural break models to detect mass layoff events from call detail records (CDRs).
  • Employed Bayesian classification to identify affected individuals based on behavioral changes in CDRs.
  • Aggregated micro-level behavioral changes to improve macroeconomic unemployment forecasts.

Main Results:

  • Successfully detected mass layoffs and identified affected individuals through changes in calling behavior.
  • Observed significant declines in social behavior and mobility among laid-off individuals.
  • Demonstrated that aggregated calling behavior changes improve unemployment rate predictions.

Conclusions:

  • Mobile phone data (CDRs) offer a novel resource for observing economic shocks at multiple scales.
  • These methods enhance the measurement of microeconomic behavior and the estimation of economic indicators.
  • The study highlights the potential of digital data for real-time economic monitoring.