Technology, Training, and Transition

Ardiana N. Gashi and Nick Adnett

Eastern European Economics, 2012, vol. 50, issue 6, 57-80

Abstract: This study addresses the link between technological change and employer-provided training in the western Balkans. It is hypothesized that firms subject to technological change have an increased demand for skills and one mechanism to accommodate this demand is by providing additional training for their workforce. To test this proposition, data are extracted from the European Bank for Reconstruction and Development-World Bank Business Environment and Enterprise Performance Survey (BEEPS) from waves 2002 and 2005. Probit and tobit estimations are used to analyze the impact of technological change upon training incidence and intensity. The findings of this analysis suggest that firms that undergo technological change are indeed more likely to provide training and there is some evidence that the training is of greater intensity. This positive association between technological change and training suggests that one way to address underinvestment in training in the western Balkans is to enhance incentives for firms to undertake technological change.

Date: 2012
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