Relatedness of occupations and sectors

Skill-relatedness of industries and occupations

There are number of ways to show how economic activities are related to one another. A skill-relatedness network reveals the similarity between economic activities in terms of the workers’ skills they rely on, as workers are more likely to move between activities where they can still benefit from their accumulated skills and expertise.

Following the scientific literature (e.g., Neffke et al. 2017), we consider two economic activities – industries or occupations – as skill-related, if the observed labour flow between a pair (between occu_i and occu_j; ind_i and ind_j) exceeds what we would expect based on the propensity of these activities to experience labour flows.

To arrive at the final measure of skill-relatedness, we consider the average of the skill-relatedness in both directions – 𝑆𝑅𝑖𝑗 and 𝑆𝑅𝑗𝑖 –to receive a symmetric measure; we normalize the measure to have its range between -1 and +1; and keep only those links that are above 0, corresponding to above expected labour flows.

Attribution and use

We are making the dataset of our relatedness for both industries and occupations available for free below, under the Creative Commons Attribution 4.0 International (CC BY 4.0) license.