Determinants of on-the-job training in enterprises: the Russian case

Abstract

Purpose This paper aims to determine the influence of various enterprise characteristics on on-the-job training. The paper focuses mainly on identifying the influence of a firm’s innovative activity, technological capacity for manufacturing and product market competition on its likelihood of having a training program and on training intensity. Design/methodology/approach The authors administered a firm-level survey to a sample of 2,000 Russian enterprises. This survey includes questions about on-the-job training and key information about the companies’ activities. Probit and ordered probit estimates are used in the statistical analyses. Findings The results indicate that an enterprise’s provision of training is determined largely by firm-specific factors, such as its innovative activity, technical and technological state of manufacturing and product market competition. The authors adopt two widely used measures of training: incidence and intensity. Innovative activity and the technical and technological state of manufacturing are decisive factors in explaining a firm’s provision of training, as they have a strictly positive effect on both the incidence and the intensity of training. Product market competition has a positive effect on the incidence of training and a negative effect on the intensity of training. Originality/value This paper is original because it assumes that the process of deciding whether to implement a training program at an enterprise and the corresponding proportion of employees involved in training is built on the presupposition that the training intensity decision is made in two stages. This paper is the first to present estimates of on-the-job training intensity based on data from Russian enterprises.