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Occupational Classifications: A Machine Learning Approach

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  • Akina Ikudo
  • Julia Lane
  • Joseph Staudt
  • Bruce Weinberg

Abstract

Characterizing the work that people do on their jobs is a longstanding and core issue in labor economics. Traditionally, classification has been done manually. If it were possible to combine new computational tools and administrative wage records to generate an automated crosswalk between job titles and occupations, millions of dollars could be saved in labor costs, data processing could be sped up, data could become more consistent, and it might be possible to generate, without a lag, current information about the changing occupational composition of the labor market. This paper examines the potential to assign occupations to job titles contained in administrative data using automated, machine-learning approaches. We use a new extraordinarily rich and detailed set of data on transactional HR records of large firms (universities) in a relatively narrowly defined industry (public institutions of higher education) to identify the potential for machine-learning approaches to classify occupations.

Suggested Citation

  • Akina Ikudo & Julia Lane & Joseph Staudt & Bruce Weinberg, 2018. "Occupational Classifications: A Machine Learning Approach," NBER Working Papers 24951, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24951
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    References listed on IDEAS

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    1. Fisher, Jonathan D. & Houseworth, Christina A., 2013. "Occupation inflation in the Current Population Survey," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 243-261.
    2. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio, 2017. "Knowledge Spillovers, ICT and Productivity Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(4), pages 592-618, August.
    3. Katharine G. Abraham & James R. Spletzer, 2009. "New Evidence on the Returns to Job Skills," American Economic Review, American Economic Association, vol. 99(2), pages 52-57, May.
    4. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    5. Daron Acemoglu & Ufuk Akcigit & Harun Alp & Nicholas Bloom & William Kerr, 2018. "Innovation, Reallocation, and Growth," American Economic Review, American Economic Association, vol. 108(11), pages 3450-3491, November.
    6. Schierholz, Malte, 2014. "Automating survey coding for occupation," FDZ Methodenreport 201410_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. repec:zbw:bofrdp:2013_022 is not listed on IDEAS
    8. Olga Alonso-Villar & Coral Del Rio & Carlos Gradin, 2012. "The Extent of Occupational Segregation in the United States: Differences by Race, Ethnicity, and Gender," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(2), pages 179-212, April.
    9. Mellow, Wesley & Sider, Hal, 1983. "Accuracy of Response in Labor Market Surveys: Evidence and Implications," Journal of Labor Economics, University of Chicago Press, vol. 1(4), pages 331-344, October.
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    Cited by:

    1. Giacomo Caterini, 2018. "Classifying Firms with Text Mining," DEM Working Papers 2018/09, Department of Economics and Management.
    2. Monirah Ali Aleisa & Natalia Beloff & Martin White, 2023. "Implementing AIRM: a new AI recruiting model for the Saudi Arabia labour market," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-41, December.
    3. John Cuffe & Sudip Bhattacharjee & Ugochukwu Etudo & Justin C. Smith & Nevada Basdeo & Nathaniel Burbank & Shawn R. Roberts, 2019. "Using Public Data to Generate Industrial Classification Codes," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 229-246, National Bureau of Economic Research, Inc.
    4. Glennon, Britta & Lane, Julia & Sodhi, Ridhima, 2018. "Money for Something: The Links between Research Funding and Innovation," IZA Discussion Papers 11711, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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