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Confused about Careers? Untangling Occupational Mobility, Miscoding and Distance

Author

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  • Carrillo-Tudela, Carlos
  • Darougheh, Saman
  • Visschers, Ludo

Abstract

Occupational mobility and its relation with economic fundamentals is obscured by mistakes when assigning occupational codes. We correct (‘de-garble’) occupation patterns, using the heterogeneous probabilities with which a worker in a certain occupation appears as working in another. This leads to stronger empirical patterns of occupational mobility with ‘task distance’ based on O*NET, across age, the business cycle and with wage changes. Miscoding between occupation pairs reflects task similarities and can be used as a distance measure itself, and appears helpful to distinguish among occupations close in task space. Overall, taking into account miscoding, occupations and tasks tend to matter (even) more for economic outcomes than standard approaches suggest.

Suggested Citation

  • Carrillo-Tudela, Carlos & Darougheh, Saman & Visschers, Ludo, 2025. "Confused about Careers? Untangling Occupational Mobility, Miscoding and Distance," CEPR Discussion Papers 20217, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:20217
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    Cited by:

    1. is not listed on IDEAS
    2. Chan, See-Yu & Hobler, Stephan & Van Rens, Thijs, 2025. "Why did we think wages are rigid for all those years?," The Warwick Economics Research Paper Series (TWERPS) 1577, University of Warwick, Department of Economics.
    3. Carrillo-Tudela, Carlos & Darougheh, Saman & Visschers, Ludo, 2026. "Danish flexicurity and occupational mobility: A comparison with the United States," Economics Letters, Elsevier, vol. 258(C).

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    Keywords

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    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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