Defining Occupational Groupings by Educational Structure

Abstract

In this study a cluster analysis is performed in order to define clusters of occupational groups according to their educational structure. The underlying assumption is that such groups with similar schooling profiles belong to the same labour-market segment and therefore offer opportunities for good forecasts of occupational manpower. Attention is paid to the optimal choice of a (dis)similarity criterion, the clustering method, and the clustering algorithms used for the problem at hand. In the analysis fourteen branches of study and four education levels are distinguished. This results in the formation of forty clusters, each characterized by combinations of branches and levels of education. It appears that this functional classification differs from the administrative International Standard Classification of Occupations (ISCO) in several respects.