workers in Germany, firms have incentives to invest relatively more into capital equipment complementary to unskilled workers … evidence consistent with this view based on an industry panel for West Germany and the US between the 1970s and 1990s. We show … that capital equipment per worker is less positively associated with the wage differential in West Germany than in the US …

levels over time in Italy. However, focusing on equality of circumstances, we show that there is still a persistent …

introducing the "dual system" in Italy by allowing on-the-job training. The reform also increased the age eligibility of the …