Occupation

1. Occupation

2. Review from the week on industrial classifications

3. 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)

4. 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) Where you work (i.e., what business)  What you do at work (your tasks, skills) Defined by occupation labor inputs the firm outputs Defined by industry resources

5. INNOVATION Defined by occupation labor inputs the firm PROCESS INNOVATION outputs Defined by industry PRODUCT INNOVATION resources

6. 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) – maintained by the BLS [link] Where you work (i.e., what business)  What you do at work (your tasks, skills)

7. 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) 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

8. North American Industry Classification System (NAICS) • Standard Occupational Classification (SOC) • Old system: SIC codes (1937 – ca. 1997) • New system: NAISC (1997 - ) • Note: Some agencies still use SIC codes • Occupation Classification • The 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.)

9. 37-0000 Building and Grounds Cleaning and Maintenance Occupations 39-0000 Personal Care and Service Occupations 41-0000 Sales and Related Occupations 43-0000 Office and Administrative Support Occupations 45-0000 Farming, Fishing, and Forestry Occupations 47-0000 Construction and Extraction Occupations 49-0000 Installation, Maintenance, and Repair Occupations 51-0000 Production Occupations 53-0000 Transportation and Material Moving Occupations 55-0000 Military Specific Occupations SOC Major Groups - Each occupation in the SOC is placed within one of these 23 major groups: 11-0000 Management Occupations 13-0000 Business and Financial Operations Occupations 15-0000 Computer and Mathematical Occupations 17-0000 Architecture and Engineering Occupations 19-0000 Life, Physical, and Social Science Occupations 21-0000 Community and Social Services Occupations 23-0000 Legal Occupations 25-0000 Education, Training, and Library Occupations 27-0000 Arts, Design, Entertainment, Sports, and Media Occupations 29-0000 Healthcare Practitioners and Technical Occupations 31-0000 Healthcare Support Occupations 33-0000 Protective Service Occupations 35-0000 Food Preparation and Serving Related Occupations

11. 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) – maintained by the BLS [link] Where you work (i.e., what business)  What you do at work (your tasks, skills) Class of worker– the nature/institutional structure of the employer How your work place is organized 

12. 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 Labor force  Under 16 Employed unemployed Not in LF Institutional pop or active duty Total population Civilian non-institutional population 

13. Other concepts 2 • 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)

14. Background: Wilbur Thompson

15. Wilbur R. Thompson, Policy-Based Analysis for Local Economic Development, in Blair and Reese, 1998.A shift from one to the other…. US BLS Industry - occupation matrix • 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]

16. Diversification Not 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 Development The 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?

17. Six Policy Foci 1. 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]

19. 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) – maintained by the BLS [link] Where you work (i.e., what business)  What you do at work (your tasks, skills) The case for targeting occupations

20. 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) – maintained by the BLS [link] Where you work (i.e., what business)  What you do at work (your tasks, skills) The case for targeting occupations

21. The old view:get a favorable industrial mixemphasize export sectors

22. So: target industries

23. So: target industries

24. Alternative:Target Occupations

26. Occupations, rather than industries, more directly capture the increasingly important human capital contribution to local economic development. Furthermore, key occupations that appear to serve chiefly local markets may constitute regional assets with spillover effects on the productivity of other regional economic activities. They may also possess potential for transformation into exporting activity through an entrepreneurial process of growth and change. The theoretical emphasis here is on enhancing the regional or community presence of a particular factor of production-- skilled labor-because it increases the productivity and performance of a range of firms and industries, both indirectly and via its role in creating, attracting, and retaining firms and, thus, jobs.

27. 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.