We study the impact of office and computing machinery (OCM) on the demands for workers
with different educational levels. The empirical analysis relies on a system of demand
equations that nests the translog, the generalised Leontief and the normalised quadratic
specifications. Using panel data on 35 German industries, we find little evidence for a robust
substitutability relationship between unskilled workers and OCM capital in manufacturing
industries. In the non-manufacturing sector, however, we find some evidence for
substitutability between OCM capital and unskilled workers.