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Firm-paid vs. worker-paid on-the-job training in Russia: Determinants and returns

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Author Info
Lazareva Olga ()

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Abstract

In a restructuring economy on-the-job training plays important role not only in raising the general level of human capital but in retooling workers for the new sectors of economy. The amount of on-the-job training in Russia has however been unsatisfactorily low compared to other countries. Main objective of this paper is to study the incentives of firms and workers to invest into employee training in Russia. Utilizing the data from Russian Longitudinal Monitoring survey for years 1999–2003, we investigate the determinants of training financing with the particular emphasis on the role of labor market characteristics. We exploit heterogeneity in the structure of regional labor markets in Russia to investigate its effect on training outcomes. In line with existing theory, it is shown that imperfections of the labor market, such as higher regional labor market concentration, lower share of small businesses and higher unemployment create incentives for the firms to provide training to employees. Hence, increase in the efficiency of the labor market is likely to bring about further decrease in the amount of employee training in a private sector.

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Publisher Info
Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 06-05e.

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Date of creation: 26 Apr 2006
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Handle: RePEc:eer:wpalle:06-05e

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Related research
Keywords: Russia; on-the-job training; labor market structure; returns to training.;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
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  1. Berger, Mark C. & Earle, John S. & Sabirianova, Klara Z., 2001. "Worker Training in a Restructuring Economy: Evidence from the Russian Transition," IZA Discussion Papers 361, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January. [Downloadable!] (restricted)
  3. Brown, J David & Earle, John S, 2002. "The Reallocation of Workers and Jobs in Russian Industry: New Evidence on Measures and Determinants," CEPR Discussion Papers 3663, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Yuri Andrienko & Sergei Guriev, 2003. "Determinants of interregional mobility in Russia: evidence from panel data," Working Papers w0027, Center for Economic and Financial Research (CEFIR). [Downloadable!]
    Other versions:
  5. Greenhalgh, Christine, 1999. "Adult Vocational Training and Government Policy in France and Britain," Oxford Review of Economic Policy, Oxford University Press, vol. 15(1), pages 97-113, Spring.
  6. Booth, Alison L. & Bryan, Mark L., 2002. "Who Pays for General Training? New Evidence for British Men and Women," IZA Discussion Papers 486, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 78-118, February. [Downloadable!] (restricted)
    Other versions:
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