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Author: Sicherman, Nachum

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1.	Bartel, Ann P. Sicherman, Nachum
1.	Technological Change and On-the-Job Training of Young Workers Presented: New York, NY, Columbia, University, NBER Summer Institute in Labor Studies, July 26-30, 1993 Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): High School Completion/Graduates; Human Capital; Technology/Technological Changes; Training, On-the-Job We use the NLSY to analyze the relationship between technological change and on-the-job training. The theoretical predictions are ambiguous: While higher rates of obsolescence are likely to decrease investment, on-the-job training will increase if technological change increases the productivity of human capital, reduces the cost of training, or increases the value of time in training relative to work. Our major empirical findings are: (1) Technological change induces firms to provide short (i.e. duration of less than a month) training to their employees, and we, therefore, do not observe a significant effect of technological change on hours of training. (2) Workers who receive training because of technological change are either high school graduates or those with eight or fewer years of schooling. (3) Workers who did not receive training in the previous year are more likely to be trained as a result of higher rates of technological change.
	Bibliography Citation Bartel, Ann P. and Nachum Sicherman. "Technological Change and On-the-Job Training of Young Workers." Presented: New York, NY, Columbia, University, NBER Summer Institute in Labor Studies, July 26-30, 1993.

2.	Bartel, Ann P. Sicherman, Nachum
2.	Technological Change and Retirement Decisions of Older Workers Journal of Labor Economics 11,1 (January 1993): 162-183. Also: http://www.jstor.org/stable/2535188 Cohort(s): Older Men Publisher: University of Chicago Press Keyword(s): Human Capital Theory; Retirement/Retirement Planning; Technology/Technological Changes; Training, Occupational According to human capital theory, technological change will influence the retirement decisions of older workers in two ways. First, workers in industries with high rates of technological change will retire later if there is a net positive correlation between technological change and on-the-job training. Second, an unexpected change in the rate of technological change will induce older workers to retire sooner because the required amount of retraining will be an unattractive investment. We matched industry data on productivity growth and occupational data on required training with data from the National Longitudinal Surveys of Older Men to test these hypotheses. Our results support both hypotheses.
	Bibliography Citation Bartel, Ann P. and Nachum Sicherman. "Technological Change and Retirement Decisions of Older Workers." Journal of Labor Economics 11,1 (January 1993): 162-183.

3.	Bartel, Ann P. Sicherman, Nachum
3.	Technological Change and the Careers of Older Workers NBER Working Paper No. 3433, National Bureau of Economic Research, 1990. Also: NBER Reprint No. 1802. Cohort(s): Older Men Publisher: National Bureau of Economic Research (NBER) Keyword(s): Human Capital Theory; Industrial Sector; Industrial Training; Job Training; Mobility, Interfirm; Retirement/Retirement Planning; Technology/Technological Changes; Training Recent research has shown that technological change has important labor market implications; this paper demonstrates one of the avenues through which this occurs. According to the theory of human capital, technological change will influence the retirement decisions of older workers in two ways. First, workers in industries characterized by high rates of technological change will have later retirement ages because these industries require larger amounts of on-the-job training. Second, an unexpected change in the industry's rate of technological change will induce older workers to retire sooner because the required amount of retraining will be an unattractive investment. The authors matched time-series data on rates of technological change and required amounts of training in 35 industrial sectors with data from the NLS Older Men's Survey to test these hypotheses. Results strongly supported both hypotheses.
	Bibliography Citation Bartel, Ann P. and Nachum Sicherman. "Technological Change and the Careers of Older Workers." NBER Working Paper No. 3433, National Bureau of Economic Research, 1990.

4.	Bartel, Ann P. Sicherman, Nachum
4.	Technological Change and the Skill Acquisition of Young Workers NBER Working Paper No. 5107, National Bureau of Economic Research, May 1995. Also: http://nber.nber.org/papers/W5107 Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Skills; Technology/Technological Changes; Training; Training, Employee; Training, On-the-Job The National Longitudinal Survey of Youth (NLSY) and six proxies for industry rates of technological change, we study the impact of technological change on skill accumulation among young male workers in the manufacturing sector during the time period 1987 through 1992. Production workers in manufacturing industries with higher rates of technological change are more likely to receive formal company training, but not other types of training. An important finding is that, while more educated workers are more likely to receive formal company training, the training gap between the highly educated and the less educated narrows, on average, as the rate of technological change increases. The positive effect of technological change on hours of training is due largely to an increase in the incidence of training, not in the number of hours per training spell. Full-text available on-line: http://nber.nber.org/papers/W5107
	Bibliography Citation Bartel, Ann P. and Nachum Sicherman. "Technological Change and the Skill Acquisition of Young Workers." NBER Working Paper No. 5107, National Bureau of Economic Research, May 1995.

5.	Bartel, Ann P. Sicherman, Nachum
5.	Technological Change and the Skill Acquisition of Young Workers Journal of Labor Economics 16,4 (October 1998): 718-755. Also: http://www.jstor.org/stable/10.1086/209904 Cohort(s): NLSY79 Publisher: University of Chicago Press Keyword(s): Human Capital; Industrial Training; Modeling; Skills; Technology/Technological Changes; Training; Training, On-the-Job Since technological change influences the rate at which human capital obsolesces and also increases the uncertainty associated with human capital investments, training may increase or decrease at higher rates of technological change. Using the National Longitudinal Survey of Youth, we find that production workers in manufacturing industries with higher rates of technological change are more likely to receive formal company training. At higher rates of technological change, the training gap between the more and less educated narrows, low-skilled nonproduction workers receive significantly more training than higher-skilled nonproduction workers, and the proportion of individuals receiving training increases.
	Bibliography Citation Bartel, Ann P. and Nachum Sicherman. "Technological Change and the Skill Acquisition of Young Workers." Journal of Labor Economics 16,4 (October 1998): 718-755.

6.	Bartel, Ann P. Sicherman, Nachum
6.	Technological Change and Wages: An Inter-Industry Analysis NBER Working Paper No. 5941, National Bureau of Economic Research, February 1997. Also: http://nber.nber.org/papers/W5941 Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Education; Heterogeneity; High School Curriculum; Skills; Technology/Technological Changes; Transfers, Skill; Wage Theory; Wages Previous research has found evidence that wages in industries characterized as "high tech," or subject to higher rates of technological change, are higher. In addition, there is evidence that - A skill-based technological change is responsible for the dramatic increase in the earnings of more educated workers relative to less educated workers that took place during the 1980s. In this paper, we match a variety of industry level measures of technological change to a panel of young workers observed between 1979 and 1993 (NLSY) and examine the role played by unobserved heterogeneity in explaining the positive relationships between technological change and wages, and between technological change and the education premium. We find evidence that the wage premium associated with technological change is primarily due to the sorting of better workers into those industries. In addition, the education premium associated with technological change is found to be the result of an increase in demand for the innate ability or other observable characteristics of more educated workers. Full-text available on-line: http://nber.nber.org/papers/W5941
	Bibliography Citation Bartel, Ann P. and Nachum Sicherman. "Technological Change and Wages: An Inter-Industry Analysis." NBER Working Paper No. 5941, National Bureau of Economic Research, February 1997.

7.	Bartel, Ann P. Sicherman, Nachum
7.	Technological Change and Wages: An Interindustry Analysis Journal of Political Economy 107,2 (April 1999): 285-325. Also: http://www.jstor.org/stable/10.1086/250061 Cohort(s): NLSY79 Publisher: University of Chicago Press Keyword(s): Education; Industrial Classification; Technology/Technological Changes; Wages Previous research has shown that wages in industries characterized by higher rates of technological change are higher. In addition, there is evidence that skill-biased technological change is responsible for the dramatic increase in the earnings of more educated workers relative to less educated workers that took place during the 1980s. In this paper, we match a variety of industry-level measures of technological change to a panel of young workers, observed between 1979 and 1993 (NLSY), and examine the role played by observed and unobserved heterogeneity in explaining the positive relationships between technological change and wages and between technological change and the education premium. We find that the wage premium associated with technological change is primarily due to the sorting of more able workers into those industries, and this premium is unrelated to any sorting based on gender or race. In addition, the education premium associated with technological change is the result of a greater demand for the innate ability or other unobserved characteristics of more educated workers.
	Bibliography Citation Bartel, Ann P. and Nachum Sicherman. "Technological Change and Wages: An Interindustry Analysis." Journal of Political Economy 107,2 (April 1999): 285-325.

8.	Munasinghe, Lalith Roshan Sicherman, Nachum
8.	Wage Dynamics and Unobserved Heterogeneity: Time Preference or Learning Ability? NBER Working Paper No. 11031, National Bureau of Economic Research, 2005. Also: http://papers.nber.org/papers/w11031.pdf Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Heterogeneity; Modeling; Wage Differentials; Wage Growth; Wage Rates A large portion of the variation in wages and wage growth rates among individuals is due to "unobserved" heterogeneity, and the source of individual heterogeneity is typically attributed to data limitations and/or the unobservability of certain productivity related factors. In this paper we develop a test that discriminates between two inherently unobservable sources of heterogeneity (both of which can clearly account for the variation in wages and wage growth rates): learning ability and workers' inter-temporal preferences (discounting). We apply this test to the large observed differences in wages and wage growth rates between smokers and non-smokers. The evidence supports the discounting hypothesis. Data are from the National Longitudinal Survey of Youth are used to test their model. They find that the interaction term in their equations are negative, that the result supports the time preference alternative, and that the result is robust across several model specifications and controls. Thus, they conclude that research on the sources of individual discount rates would be a fruitful direction for wage research to follow.
	Bibliography Citation Munasinghe, Lalith Roshan and Nachum Sicherman. "Wage Dynamics and Unobserved Heterogeneity: Time Preference or Learning Ability?" NBER Working Paper No. 11031, National Bureau of Economic Research, 2005.

9.	Munasinghe, Lalith Roshan Sicherman, Nachum
9.	Why Do Dancers Smoke? Smoking, Time Preference, and Wage Dynamics Eastern Economic Journal 32,4 (Fall 2006): 595-616. Also: http://web.holycross.edu/RePEc/eej/Archive/Volume32/V32N4P595_616.pdf Cohort(s): NLSY79 Publisher: Palgrave Macmillan Journals Keyword(s): Occupations; Smoking (see Cigarette Use); Time Preference; Wage Dynamics; Wage Growth Permission to reprint the abstract has not been received from the publisher. The focus of the paper is on smoking and wage dynamics. Our main objective is to first empirically assess the correlation between smoking and wage growth over the life cycle, and second, to ask whether the estimated correlation between smoking and wage dynamics is consistent with the above time preference argument. Admittedly, our analysis of smoking and wage growth does not focus on dancers per se, and the intention of the opening paragraph is simply to motivate the hypothesis that individual discount rates may be a potentially important source of the observed differences in wage growth prospects among careers. Hence we need to address two key questions. First, what are the correlations between smoking and wage dynamics? Second, is smoking a reasonable proxy for an individual's discount rate?
	Bibliography Citation Munasinghe, Lalith Roshan and Nachum Sicherman. "Why Do Dancers Smoke? Smoking, Time Preference, and Wage Dynamics." Eastern Economic Journal 32,4 (Fall 2006): 595-616.

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