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How bad is occupational coding error? A task-based approach

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  • Speer, Jamin D.

Abstract

Studies of occupational choice and mobility are often plagued by rampant occupational coding error. Use of task-based occupation measures, such as O*Net, may mitigate the bias caused by coding error if the occupation is misclassified as an occupation similar to the true occupation. Measuring occupational changes in “task space”, I find that task-based measures reduce the problems of coding error, but only slightly. If one does not correct for coding error, one overestimates traditional occupational mobility rates by about 90%; using task-based measures, the overestimate of mobility is still 75%. I also show that when tasks are used as regressors and coding error is not corrected, estimates will be attenuated by 15%–20%. Task-based measures are a slight improvement over census occupation codes but are no panacea for dealing with coding error.

Suggested Citation

  • Speer, Jamin D., 2016. "How bad is occupational coding error? A task-based approach," Economics Letters, Elsevier, vol. 141(C), pages 166-168.
    • Handle: RePEc:eee:ecolet:v:141:y:2016:i:c:p:166-168
    DOI: 10.1016/j.econlet.2016.02.025
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    References listed on IDEAS

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    Cited by:

    1. Christian vom Lehn & Cache Ellsworth & Zachary Kroff, 2022. "Reconciling Occupational Mobility in the Current Population Survey," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 1005-1051.
    2. Vasilios D. Kosteas, 2020. "Occupational concentration and outcomes for displaced workers," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 977-997, August.
    3. Vasilios D. Kosteas, 2023. "Job satisfaction and employer‐sponsored training," British Journal of Industrial Relations, London School of Economics, vol. 61(4), pages 771-795, December.

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    More about this item

    Keywords

    Occupational mobility; Coding error; Task-based occupation measures;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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