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

45 Pages Posted: 21 Jan 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: January 21, 2015

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.

Keywords: labour mobility, 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 (January 21, 2015). Higher School of Economics Research Paper No. WP BRP 88/EC/2015, Available at SSRN: https://ssrn.com/abstract=2553076 or http://dx.doi.org/10.2139/ssrn.2553076

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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