occupation. review from the week on industrial classifications

Occupation

Review from the week on industrial classifications

Industry – what you produce (the output of your labor) often understood by knowing the employer -- use the NAISC (once SIC)

Occupation – how you produce (the input of your labor) -- often understood by job title -- use the Standard Occupational Classification (SOC)



laborlabor

resourcesresources

inputsinputs

the firmthe firm outputsoutputs

Where you work (i.e., what business)

What you do at work (your tasks, skills)

laborlabor

resourcesresources

inputsinputs

the firmthe firm outputsoutputs

INNOVATION

PROCESSINNOVATION PRODUCT

INNOVATION


Occupation – how you produce (the input of your labor) -- often understood by job title -- use the Standard Occupational Classification (SOC) – maintained by the BLS [link]

Industry Occupation

Steel (manufacturing)

Educational services

janitor

engineer



http://www.bls.gov/soc/home.htm



Which one is more important in determining…

Wages and income

Benefits (including health and retirement)

Job stability

Job advancement (and human capital development)

Multiplier effects

Geographic location of work

Racial and gender and age structure of workforce

North American Industry Classification System (NAICS)

• Old system: SIC codes (1937 – ca. 1997)

• New system: NAISC (1997 - )

• Note: Some agencies still use SIC codes

Occupation ClassificationThe census occupational classification

system was developed to be consistent with the Standard Occupational Classification (SOC) Manual: 2000 2. It has 509 separate categories arranged into the 23 major groups of the SOC. For occupations in the census system, the numeric codes always end with digits 0 through 6.

(NOTE: No industry and occupation codes are the same.)

Standard Occupational Classification (SOC)

SOC Major Groups - Each occupation in the SOC is placed within one of these 23 major groups:

11-0000 Management Occupations13-0000 Business and Financial Operations Occupations15-0000 Computer and Mathematical Occupations17-0000 Architecture and Engineering Occupations19-0000 Life, Physical, and Social Science Occupations21-0000 Community and Social Services Occupations23-0000 Legal Occupations25-0000 Education, Training, and Library Occupations27-0000 Arts, Design, Entertainment, Sports, and Media Occupations29-0000 Healthcare Practitioners and Technical Occupations31-0000 Healthcare Support Occupations33-0000 Protective Service Occupations35-0000 Food Preparation and Serving Related Occupations

37-0000 Building and Grounds Cleaning and Maintenance Occupations39-0000 Personal Care and Service Occupations41-0000 Sales and Related Occupations43-0000 Office and Administrative Support Occupations45-0000 Farming, Fishing, and Forestry Occupations47-0000 Construction and Extraction Occupations49-0000 Installation, Maintenance, and Repair

Occupations51-0000 Production Occupations53-0000 Transportation and Material Moving

Occupations55-0000 Military Specific Occupations

http://www.bls.gov/soc/soc_a0a0.htm

http://www.bls.gov/soc/soc_b0a0.htm

http://www.bls.gov/soc/soc_b0a0.htm

http://www.bls.gov/soc/soc_c0a0.htm

http://www.bls.gov/soc/soc_d0a0.htm

http://www.bls.gov/soc/soc_e0a0.htm

http://www.bls.gov/soc/soc_f0a0.htm

http://www.bls.gov/soc/soc_g0a0.htm

http://www.bls.gov/soc/soc_h0a0.htm

http://www.bls.gov/soc/soc_i0a0.htm

http://www.bls.gov/soc/soc_i0a0.htm

http://www.bls.gov/soc/soc_j0a0.htm

http://www.bls.gov/soc/soc_j0a0.htm

http://www.bls.gov/soc/soc_k0a0.htm

http://www.bls.gov/soc/soc_l0a0.htm

http://www.bls.gov/soc/soc_m0a0.htm

http://www.bls.gov/soc/soc_m0a0.htm

http://www.bls.gov/soc/soc_n0a0.htm

http://www.bls.gov/soc/soc_n0a0.htm

http://www.bls.gov/soc/soc_o0a0.htm

http://www.bls.gov/soc/soc_p0a0.htm

http://www.bls.gov/soc/soc_q0a0.htm

http://www.bls.gov/soc/soc_q0a0.htm

http://www.bls.gov/soc/soc_r0a0.htm





Class of worker– the nature/institutional structure of the employerHow your work place is organized

Total populationTotal populationEmployedEmployedUnder 16Under 16 unemployed

unemployed Not in LFNot in LF

Institutional pop or active

duty

Institutional pop or active

duty

Labor force

Civilian non-institutional population

Other concepts 1• Labor force = employed + unemployed• Labor force participation rates (LFPR)

= labor force / civilian non-institutional population• Civilian non-institutional population

– Included are persons 16 years of age and older residing in the 50 States and the District of Columbia who are not inmates of institutions (for example, penal and mental facilities, homes for the aged), and who are not on active duty in the Armed Forces. (Current Population Survey)

• Unemployed: – Persons aged 16 years and older who had no employment during the reference week, were

available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed.

• Unemployment rate = unemployed / labor force

• Human capital– Specific human capital– General human capital

• Skill OED: “6. a. Capability of accomplishing something with precision and certainty; practical knowledge in combination with ability; cleverness, expertness. Also, an ability to perform a function, acquired or learnt with practice”

• Labor productivity = output per hour worked (e.g., how efficiently are labor inputs converted to outputs?)

• Wage vs. salary vs. piece work

• Full time work (35+ hours/week) vs. part-time (<35 hrs/week)

Other concepts 2

Background: Wilbur Thompson

Wilbur R. Thompson, Policy-Based Analysis for Local Economic Development, in Blair and Reese, 1998. A shift from one to the other….

•Relate to the debate over the supply vs. demand explanations of unemployment. •Does this mean a shift from growth industries to growth occupations? Yes, in part, but also looking at where inside an industry there is promising growth (the spatial division of labor). •"Local development managers have also become intellectually lazy and have come to depend too much on adroitly marketing a poorly crafted product." [4]•A shift from targeting a whole industry to part of an industry (assuming the spatial division of labor. [5]

DEMAND TO SUPPLY

products, markets Labor markets, skills, humancapital

Product Process, function

Industry Occupation

"What they make" "what they do"

US BLS

Industry - occupation matrix

DiversificationNot just product, but also process.Examples: Detroit is functionally diversified; Flint is not (it is both industrially and functionally specialized). So: towards a functional comparative advantage (not just an industrial advantage)

The Political Geography of Local Economic DevelopmentThe dilemma: metro areas make sense economically (the commute zone); but no metro government; So states become the implicit or default metro planning agency.View a state economy as "a federation of local economies."

Compare to Jane Jacobs and cities and the wealth of nations: what is the right unit of analysis?

Six Policy Foci1. Local Incomes Policy: From any job to good jobs (good skills, transferable skills, learning, balance of male an female employment): the creation of "occupational ladders"

The ambiguity of average hourly earnings: Sometimes high wages mean high skills (marginal cost = marginal productivity). E.g., Boeing workers. But sometimes high wages are in lower skill jobs. Why? "high wages have been wrung from a combination of oligopoly price power and union wage power." [NOTE: explained not by microeconomics, but by institutional economics]

Also: this overpaid work makes economic development hard: high expectations, low transferable (general) human capital, and "domestic

monopoly power is not what it used to be." [7]



Industry Occupation

Steel (manufacturing)

Educational services

janitor

engineer



The case for targeting occupations

The old view:get a favorable industrial mixemphasize export sectors

So: target industries

Alternative:Target Occupations

Occupations, rather than industries, more directly capturethe increasingly important human capital contribution tolocal economic development. Furthermore, key occupationsthat appear to serve chiefly local markets may constituteregional assets with spillover effects on the productivityof other regional economic activities. They may alsopossess potential for transformation into exporting activitythrough an entrepreneurial process of growth and change.The theoretical emphasis here is on enhancing the regionalor community presence of a particular factor of production--skilled labor-because it increases the productivityand performance of a range of firms and industries, bothindirectly and via its role in creating, attracting, and retainingfirms and, thus, jobs.

If these propositions are valid, economic and community developers could identify and target a number of such occupations as they do industries. Depending on the mix of growth, efficiency, and equity goals, key occupations could be sought with some combination of the following characteristics.

First, they should demonstrate potential for "capturability"; that is, they should exhibit uneven distributions across the U.S. and high interregional rates of migration.

Second, they should be posting relatively high levels of job growth with expectations that such growth will continue.

Third, they should demonstrate relatively high levels of connectivity across industries.

Fourth, they should offer opportunities for entrepreneurship. Finally, they should "match" the skills and potential of the existing local labor

force.

occupation. review from the week on industrial classifications

Documents

job title

census system

new system

occupation codes

numeric codes

service occupations41

healthcare practitioners

related occupations37