Investment In Human Capital In Post-Soviet Countries: Why Are Firms Not Training More?

Using STEP employer surveys data in Armenia, Azerbaijan, Georgia and Ukraine, this paper investigates how innovation, openness to international business contacts, use of computer at work and skills shortages affect employer-provided training in post-Soviet countries. It examines different types of training (less formal on-the-job training along with more formal in-house and external training) provided to white-collar or blue-collar workers. After controlling for a range of firm characteristics, we find a positive link between technological innovation and intensity of training of all types provided to white-collar workers that points to the technology-skills complementarity. Besides, the level of computer use at work is a significant determinant of the incidence and intensity of external training provided to white-collar and blue-collar workers.