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Interpretation Problems with Changes in Indices based on Categorizations

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  • Paul Frijters

    (Vrije Universiteit Amsterdam)

Abstract

In this paper it is argued that occupational and organizational codes maximizethe correspondence between activities and easily observable characteristics atthe time of their development. Over time the codes become less relevant, leadingto the false impression that the segregation of individuals is declining.

Suggested Citation

  • Paul Frijters, 2000. "Interpretation Problems with Changes in Indices based on Categorizations," Tinbergen Institute Discussion Papers 00-031/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20000031
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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