Multiple regression model with unemployment proportion as response

I am running a basic multiple regression model with Unemployment proportion (logit transformation of it) at block group level (from ACS 5-year data) as the response variable. In each of the ACS 5-year releases of the past 7 years (2013 to 2019) Unemployment counts are estimated to be 0 in more than a few block groups (resulting in 0 unemployment proportions for those said block groups) and there are also a few block groups that result in relatively higher unemployment counts. Because of this, my model fit is quite ugly and I am trying to brainstorm ways to solve this issues. I would really appreciate some references if anyone is familiar with this kind of a situation. Thank you for your time. 

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  • Thank you so much! Is it also safe to assume that there are probably not a lot of instances where Block Group level estimates from ACS 5-year summary files are used in modeling because of their high MOEs?