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Breaking Out Of Poverty Traps: Internal Migration And Interregional Convergence In Russia

Author

Listed:
  • Sergei Guriev

    () (New Economic School)

  • Elena S. Vakulenko

    () (National Research University Higher School of Economics)

Abstract

We study barriers to labour mobility using panel data on gross region-to-region migration flows in Russia in 1996-2010. Using both parametric and semiparametric methods and controlling for region-to-region pairwise fixed effects, we find a non-monotonic relationship between income and migration. In richer regions, higher incomes result in lower migration outflows. However, in the poorest regions, an increase in incomes results in higher emigration. This is consistent with the presence of geographical poverty traps: potential migrants want to leave the poor regions but cannot afford to move. We also show that economic growth and financial development have allowed most Russian regions to grow out of poverty traps bringing down interregional differentials of wages, incomes and unemployment rates

Suggested Citation

  • Sergei Guriev & Elena S. Vakulenko, 2015. "Breaking Out Of Poverty Traps: Internal Migration And Interregional Convergence In Russia," HSE Working papers WP BRP 88/EC/2015, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:88/ec/2015
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Fabián Slonimczyk & Marco Francesconi & Anna Yurko, 2017. "Moving On Up for High School Graduates in Russia: The Consequences of the Unified State Exam Reform," CESifo Working Paper Series 6447, CESifo Group Munich.
    2. Ekaterina Aleksandrova & Kristian Behrens & Maria Kuznetsova, 2018. "Manufacturing (Co)Agglomeration in a Transition Country: Evidence from Russia," HSE Working papers WP BRP 186/EC/2018, National Research University Higher School of Economics.
    3. Sascha Sardadvar & Elena Vakulenko, 2016. "Interregional Migration Within Russia And Its East-West Divide: Evidence From Spatial Panel Regressions," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(2), pages 123-141, July.
    4. Kumo, Kazuhiro, 2016. "Inter-regional Population Migration in Russia Revisited: Analysis on Origin-to-Destination Matrix, 1990-2013," CEI Working Paper Series 2016-2, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    5. World Bank Group, 2016. "Russian Economic Report, No. 35, April 2016," World Bank Other Operational Studies 24028, The World Bank.
    6. Elena Vakulenko, 2016. "Does migration lead to regional convergence in Russia?," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 9(1), pages 1-25.
    7. Anderson, Kym & Strutt, Anna, 2014. "Food security policy options for China: Lessons from other countries," Food Policy, Elsevier, vol. 49(P1), pages 50-58.
    8. Lifshits, Marina, 2016. "Forecasting of the global migration situation based on the analysis of net migration in the countries," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 41, pages 96-122.
    9. repec:nea:journl:y:2017:i:35:p:103-124 is not listed on IDEAS
    10. repec:spr:anresc:v:59:y:2017:i:2:d:10.1007_s00168-017-0844-3 is not listed on IDEAS
    11. Giuranno, Michele & Biswas, Rongili, 2015. "Internal migration and public policy," POLIS Working Papers 183, Institute of Public Policy and Public Choice - POLIS.
    12. Calvo,Paula Andrea & Lopez-Calva,Luis-Felipe & Posadas,Josefina, 2015. "A decade of declining earnings inequality in the Russian Federation," Policy Research Working Paper Series 7392, The World Bank.
    13. Sergey Kapelyuk, 2015. "The effect of minimum wage on poverty," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 389-423, April.
    14. repec:eee:rujoec:v:3:y:2017:i:4:p:411-424 is not listed on IDEAS
    15. Paul Vertier & Max Viskanic, 2018. "Dismantling the "Jungle": Migrant Relocation and Extreme Voting in France," CESifo Working Paper Series 6927, CESifo Group Munich.
    16. Carol S. Leonard & Zafar Nazarov & Elena S. Vakulenko, 2016. "The impact of sub-national institutions," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 421-446, July.

    More about this item

    Keywords

    labour mobility; poverty traps; liquidity constraints;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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