Determinants of employer-provided training in construction firms: evidence from transition economies

What is it about?

Why do some construction companies train their workers while most do not? We studied 1,372 construction firms across 28 countries in Eastern Europe and Central Asia. Around two-thirds provide no training at all, despite widespread skills shortages. We found that companies typically only train once they notice a skills problem, rather than planning ahead. Any perceived skill gap triggers training, but a worse one doesn't reliably trigger more. Firms introducing new products or services are more likely to train, and, counter-intuitively, firms in the smallest towns train more than those in mid-sized cities, possibly because they cannot easily hire skilled workers from elsewhere. These findings suggest policymakers should help firms spot skills gaps earlier, direct training resources towards smaller towns, and link training programmes to innovation adoption from the outset.

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