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

Purpose: This paper aims to investigate the determinants of employee training provision in construction across Central and Eastern Europe and Central Asia.
Design/methodology/approach: Using Business Environment and Enterprise Performance Survey (BEEPS) 2019 data, the study analyses 1,372 construction firms (1,098 after listwise deletion) across 28 countries. A probit model with average marginal effects examines how managerial experience, perceived workforce education adequacy, innovation activity, firm size and locality size influence training provision. Institutional grouping controls and extensive robustness checks are reported. Findings: Training provision is predominantly reactive, driven by perceived skill deficiencies rather than strategic planning. Perceived workforce education inadequacy is jointly significant as a determinant of training (Wald test p = 0.011), though the graduated intensity pattern observed in point estimates is not statistically distinguishable from a simple binary effect. Manager experience, perceived education inadequacy, firm size, innovation activity and smaller locality size significantly increase training likelihood. Practical implications: Policy should address skill deficiencies through vocational partnerships and place-based strategies rather than relying solely on financial subsidies. If the association between managerial experience and training reflects a causal pathway, management development programmes can indirectly benefit workforce training. Training initiatives should target smaller localities, where firms demonstrate greater receptivity. Originality/value: The findings challenge the assumption that training decisions in construction follow the strategic optimisation logic of human capital theory, revealing a reactive pattern shaped by bounded rationality. The study provides sector-specific evidence from 28 transition economies. The finding that firms in smaller localities are more likely to provide employee training contributes new evidence on place-based workforce development.