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How to Assess the Transferability of Worker Skills: A Hybrid Clustering Approach

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  • Khalaf, Christelle
  • Michaud, Gilbert
  • Jolley, G. Jason

Abstract

Skillshed analyses can help regional economies circumvent future skills gaps. In this paper, we employ a method to assess the skills of displaced workers using occupational clustering, which groups individuals with similar skillsets. We first use Ward's hierarchical agglomerative cluster algorithm, which partitions occupations into mutually exclusive subsets. We supplement this approach with fuzzy clustering techniques, as relying exclusively on Ward's method omits potential career substitutes. Finally, we employ visual tools to present the dissimilarity measure, or skills gap, to help displaced workers and workforce development practitioners connect current competencies to new career opportunities.

Suggested Citation

  • Khalaf, Christelle & Michaud, Gilbert & Jolley, G. Jason, 2021. "How to Assess the Transferability of Worker Skills: A Hybrid Clustering Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 51(1), April.
    • Handle: RePEc:ags:jrapmc:339948
    DOI: 10.22004/ag.econ.339948
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    References listed on IDEAS

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    1. G. Jason Jolley & Christelle Khalaf & Gilbert Michaud & Austin M. Sandler, 2019. "The economic, fiscal, and workforce impacts of coal‐fired power plant closures in Appalachian Ohio," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(2), pages 403-422, June.
    2. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
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