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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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    More about this item

    Keywords

    labour mobility; poverty traps; liquidity constraints;
    All these keywords.

    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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