Employer-provided training, innovation and skills in post-Soviet countries

Abstract

This paper analyzes the extent of employer‐provided training in Armenia, Azerbaijan, Georgia and Ukraine and investigates its relationship with innovation, having international business contacts, use of computers at work, reported skills shortages and other firm characteristics. It contributes to the literature by examining different types of training – initial on‐the‐job learning, more formal in‐house training and external training, which is provided by firms to two categories of workers – white‐ and 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. Furthermore, 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.