An Explanation of the Occupational and Educational Structure of Employment by Means of Multinomial Logit

Abstract:     
The fixed coefficient manpower requirements approach provides information on shifts in the occupational and educational structure of employment over time, but neglects the substitution between the various occupations and educational groups. In this study shifts in the structure of 83 occupations within 21 branches of industry in the Netherlands from 1981 to 1985 are explained by past occupational structures and technological developments. Besides, the educational structures according to 58 educational groups within the occurring combinations of the 83 occupational classes and 21 branches of industry in the Netherlands from 1981 to 1985 are explained by past educational structures, technological developments and the skill structure of labour supply. The explanation of both employment structures are carried out by means of multinomial logit.

Number of Pages in PDF File: 73

Keywords: labour market, education, occupation, multinomial logit

JEL Classification: I21, J24

working papers series