Does Migration Lead to Regional Convergence in Russia?
29 Pages Posted: 15 Feb 2014 Last revised: 1 Jul 2014
Date Written: February 14, 2014
We analyze the impact of migration on wages, income and the unemployment rate. Using the official Russian statistical database from 1995 to 2010, we calculate a dynamic panel data model with spatial effects. There is a positive spatial effect for wages and unemployment. There is no significant impact of migration on the unemployment rate. We find a negative relationship between net internal migration and both wages and income, which is explained by the positive effect of emigration. However, the migration benefits are not big enough to make a difference on the Gini index across regions. We conclude that migration does not affect the regional convergence of economic indicators.
Keywords: convergence, migration, wage, income, unemployment rate, spatial dynamic panel data models.
JEL Classification: R23, C23.
Suggested Citation: Suggested Citation