Breaking Out of Poverty Traps: Internal Migration and Interregional Convergence in Russia

50 Pages Posted: 15 Jan 2013 Last revised: 10 Feb 2015

See all articles by Sergei Guriev

Sergei Guriev

Sciences Po; Centre for Economic Policy Research (CEPR)

Elena Vakulenko

National Research University Higher School of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: February 9, 2015

Abstract

We study barriers to labor 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 income results in lower migration outflows. However, in the poorest regions, increase in income results in higher emigration. This is consistent with the presence of the geographical poverty traps: potential migrants want to leave the poor regions but cannot afford to finance the 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.

Keywords: convergence, internal migration, poverty traps, liquidity constraints

JEL Classification: J61, R23

Suggested Citation

Guriev, Sergei and Vakulenko, Elena, Breaking Out of Poverty Traps: Internal Migration and Interregional Convergence in Russia (February 9, 2015). Available at SSRN: https://ssrn.com/abstract=2200539 or http://dx.doi.org/10.2139/ssrn.2200539

Sergei Guriev

Sciences Po ( email )

27 rue Saint-Guillaume
Paris Cedex 07, 75337
France

HOME PAGE: http://econ.sciences-po.fr/staff/sergei-guriev

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Elena Vakulenko (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

HOME PAGE: http://www.hse.ru/org/persons/3053715

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