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

61 Pages Posted: 7 Oct 2013

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: October 2013

Abstract

We study barriers to labor mobility using panel data on gross region-to-region migration flows in Russia for 1995-2010. We find that barriers that hindered internal migration in 1990s have been generally eliminated by the end of 2000s. In 1990s many poor Russian regions were in poverty traps: potential migrants wanted to leave those regions but could not afford to finance the move. In 2000s (especially in late 2000s), these constraints were no longer binding. Overall economic growth and development of financial markets allowed even the poorest Russian regions to grow out of poverty traps resulting in convergence between Russian regions in 2000s.

Keywords: internal migration, liquidity constraints, poverty traps

JEL Classification: J61, R23

Suggested Citation

Guriev, Sergei and Vakulenko, Elena, Breaking Out of Poverty Traps: Internal Migration and Interregional Convergence in Russia (October 2013). Available at SSRN: https://ssrn.com/abstract=2337005

Sergei Guriev (Contact Author)

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

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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