Evaluation of Total Employment Rate Aged 15-64 in EU15

Many papers have been written on the subject - total employment rate, and most of them stressed on excessive pressure emanating from economic recession, heavy competition, modern and skill biased technological changes as the main principal causes of demands for jobs. Unarguably, evaluating total employment rate remain issues of considerable importance for economists, statisticians, the media and policy makers. However, understanding how the economy works requires a shift from economic modelling to economic analysis. We will consider the use of association model as an alternative to reduced form methods. Against the background of total employment rate, this study considers and estimate the most accurate association model of the Categorical Data Analysis for the total employment rate - employed persons aged 15-64 as a share of the total population of the same age group in the EU15 from 2008-2017. The analysis of association (ANOAS) table is given in order to ascertain the percentage of the data which is covered by each model. We estimate the association model to find the model with the best fit and acceptable. In conclusion we find out that the Column Effects Association Model (C) has the best fit because it covers almost 90% of the data - giving the best fit among all.