Empirical Study

Study looked at 400 Italian manufacturing firms.

Firms that adopted new technologies exhibited a stronger tendency to employ more skilled workers.

Unskilled Italian workers seem to have been particularly vulnerable to the combined effect of technological change.

Policy implications

Piva, Santarelli, Vivarelli feel policy makers should encourage employers to give on-the-job traiing to unskilled employees. This would allow them to develope "non-cognitive" skills.

Advocate for education and off-the job training.