# ISIC Coding Issues Jürgen Schwärzler, UN Statistics Division, Classifications Section.

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ISIC Coding Issues Jürgen Schwärzler, UN Statistics Division, Classifications Section

Problems with current system Use of letters at top has been criticizedUse of letters at top has been criticized Pure numerical easier to handle in computer systemsPure numerical easier to handle in computer systems 17 top Sections are too much; Manufacturing too detailed17 top Sections are too much; Manufacturing too detailed length of the code: change from 4 to 5 digit code would be costly (sequential files)length of the code: change from 4 to 5 digit code would be costly (sequential files)

ISIC 3.1 coding system

Characteristics:Characteristics: 4 digits/3 levels + 1 letter for top level4 digits/3 levels + 1 letter for top level 17 top level17 top level Sections 62 Divisions 161 Groups 297 classes Manufacturing with 23 DivisionsManufacturing with 23 Divisions

ISIC 3.1 coding system Advantages:Advantages: Numeric for code-assignmentNumeric for code-assignment 3 levels with 4 digits and # top level ‘Sections’ > 103 levels with 4 digits and # top level ‘Sections’ > 10 Disadvantage:Disadvantage: A “correlation table” between 1 st and 2 nd level is neededA “correlation table” between 1 st and 2 nd level is needed Manufacturing exceeds 10 GroupsManufacturing exceeds 10 Groups

Correlation, Section Division

Overview Alternatives Reflect everybody’s wishes would mean: Pure numeric code (  6 digits),Pure numeric code (  6 digits), add’l top-top level (  6 digits),add’l top-top level (  6 digits), Constraint: 4 digitsConstraint: 4 digits 1.Numerical, assuming 22 Sections 2.Letters for Sections, assuming 22 Sections 3.Numbers for top level (4 levels, remove 1 level) 4.Numbers for top level (5 levels, keep structure) 5.Intermediate level for Manufacturing

ISIC 4 structure, option 1a Top structure with 22 sectionsTop structure with 22 sections Purely numericalPurely numerical 4 digits /3 levels4 digits /3 levels  Lowest level lost!  Manufacturing not solved!

ISIC 4 structure, option 1a 01Agriculture, hunting, fishing, forestry 011Agriculture and related services 0111Crop production; market gardening; horticulture 0112Animal production 0113Mixed agriculture 0115Incidental services to agriculture 012Fish farming 0121Open sea fish farming 0122Other fish farming 013Fishing 0131Deep sea fishing 0132Costal and lagoon fishing 0133Lake and river fishing 014Hunting and trapping 0140Hunting and trapping 015Forestry and logging 0151Forestry 0152Logging 0153Incidental services to forestry and logging 02Mining and quarrying 1 st level 2 nd level 3 rd level

ISIC 4 structure, option 1b Top structure with 22 sectionsTop structure with 22 sections Purely numericalPurely numerical 5 digits /4 levels5 digits /4 levels  Detail of ISIC 3.1 preserved  Manufacturing not solved!

ISIC 4 structure, option 1b 01Agriculture, hunting, fishing, forestry 011Agriculture and related services 0111Crop production; market gardening; horticulture 01111Growing of cereals and other crops n.e.c. 01112Growing of vegetables, horticultural specialties and nursery products 01113Growing of fruit, nuts, beverage and spice crops 0112Animal production 01121Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 01129Other animal farming; production of animal products n.e.c. 0113Mixed agriculture 01130Mixed agriculture 0115Incidental services to agriculture 01150Incidental services to agriculture 012Fish farming … 02Mining and quarrying 4 th level, ISIC 3.1

ISIC 4 structure, option 1c Top structure with 22 sectionsTop structure with 22 sections Purely numericalPurely numerical Compressed structure withCompressed structure with 4 digits /3 levels4 digits /3 levels  Get rid of an intermediate level!  Detail of ISIC 3.1 preserved  Run into additional troubles  Manufacturing not solved!

ISIC 4 structure, option 1c 01Agriculture, hunting, fishing, forestry 011Agriculture and related services 0111Growing of cereals and other crops n.e.c. 0112Growing of vegetables, horticultural specialties and nursery products 0113Growing of fruit, nuts, beverage and spice crops 0114Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 0115Other animal farming; production of animal products n.e.c. 0116Mixed agriculture 0117Incidental services to agriculture 012Fish farming … 02Mining and quarrying 1 st level 2 nd level 4 th level

ISIC 4 structure, option 2 Maintaining current ISIC coding structureMaintaining current ISIC coding structure Top structure with 22 SectionsTop structure with 22 Sections Top level “letter-coded”Top level “letter-coded” 4 digits (3 numeric levels + 1 letter)4 digits (3 numeric levels + 1 letter)  Disadvantages remain unresolved

ISIC 4 structure, option 2 AAgriculture, hunting, fishing, forestry 01Agriculture and related services 011Crop production; market gardening; horticulture 0111Growing of cereals and other crops n.e.c. 0112Growing of vegetables, horticultural specialties and nursery products 0113Growing of fruit, nuts, beverage and spice crops 012Animal production 0121Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 0129Other animal farming; production of animal products n.e.c. 013Mixed agriculture 0130Mixed agriculture 015Incidental services to agriculture 0150Incidental services to agriculture … BMining and quarrying 1 st level 2 nd level 3 rd level 4 th level

ISIC 4 structure, option 3 Additional top-level (<10 categories)Additional top-level (<10 categories) Purely numerical codePurely numerical code Compressed structureCompressed structure 4 levels/4 digits4 levels/4 digits  Get rid of an intermediate level!  Run into additional troubles

ISIC 4 structure, option 3 1Agriculture, hunting, fishing, forestry 10Agriculture, hunting, fishing, forestry 101Agriculture and related services 1011Growing of cereals and other crops n.e.c. 1012Growing of vegetables, horticultural specialties and nursery products 1013Growing of fruit, nuts, beverage and spice crops 1014Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 1015Other animal farming; production of animal products n.e.c. 1016Mixed agriculture 1017Incidental services to agriculture 102Fish farming 1021Open sea fish farming 1022Other fish farming … 2Mining and quarrying TOP-level 1 st level 4 th level 2 nd level

ISIC 4 structure, option 4a Additional top-level (<10 categories)Additional top-level (<10 categories) 1 level “letter coded”1 level “letter coded” 5 levels (4 digits+1 letter)5 levels (4 digits+1 letter)  Unattached “letter-code”-level (~status quo)

ISIC 4 structure, option 4a 0Agriculture, hunting, fishing, forestry AAgriculture, hunting, fishing, forestry 01Agriculture and related services 011 Crop production; market gardening; horticulture 0111Growing of cereals and other crops n.e.c. 0112Growing of vegetables, horticultural specialties and nursery products 0113Growing of fruit, nuts, beverage and spice crops 012 Animal production 0121Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 0122Other animal farming; production of animal products n.e.c. 013Mixed agriculture 0130Mixed agriculture 014Incidental services to agriculture 0140Incidental services to agriculture … 1Mining and quarrying BMining and quarrying 1 st level 2 nd level 3 rd level 4 th level TOP-level

ISIC 4 structure, option 4b Additional top-level (<10 categories)Additional top-level (<10 categories) Two levels are “letter coded”Two levels are “letter coded” Can easily accommodate current ISIC structureCan easily accommodate current ISIC structure 5 levels (3 digits+2 letters)5 levels (3 digits+2 letters)  Unattached “letter-code”-level  Same drawbacks as current system

ISIC 4 structure, option 4b 0 Agriculture, hunting, fishing, forestry AAgriculture, hunting, fishing, forestry AAAgriculture and related services 01Crop production; market gardening; horticulture 011Growing of cereals and other crops n.e.c. 012Growing of vegetables, horticultural specialties and nursery products 013Growing of fruit, nuts, beverage and spice crops 02Animal production 021Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 022Other animal farming; production of animal products n.e.c. 03Mixed agriculture 030Mixed agriculture ABFish farming … 1Mining and quarrying BMining and quarrying 1 st level 2 nd level 3 rd level 4 th level TOP-level

Special case: Manufacturing Option A: split into 16 categories as proposedOption A: split into 16 categories as proposed  Would require 2 digits on whatever level Option B: create intermediate level (~5 groupings)Option B: create intermediate level (~5 groupings)

Manufacturing (1)

Manufacturing (2)

Manufacturing (3)

Manufacturing (4) M1:Manufacture of food products, beverages, tobaccoM1:Manufacture of food products, beverages, tobacco M2:Manufacture of textiles, wearing apparel, fur, leather and related productsM2:Manufacture of textiles, wearing apparel, fur, leather and related products M3:Manufacture of wood and wood productsM3:Manufacture of wood and wood products M4:Manufacture of petroleum products, chemicals, chemical products, plastics and rubberM4:Manufacture of petroleum products, chemicals, chemical products, plastics and rubber M5:Manufacture of metals, machines, transport and electric/electronic equipmentM5:Manufacture of metals, machines, transport and electric/electronic equipment M6:Manufacture n.e.cM6:Manufacture n.e.c

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