DOES MIGRATION LEAD TO REGIONAL CONVERGENCE IN RUSSIA?
E. S. Vakulenko
Keywords: convergence, income, migration, spatial dynamic panel data models, unemployment, wage
Abstract
We analyze the impact of migration on wage, unemployment rate and income. Using Russian official statistical database from 1995 to 2010 we estimate dynamic panel data model with spatial effects. There is no significant impact of migration on unemployment rate. There is a positive spatial effect for wage and unemployment. We find negative relationship between net internal migration, and both wage and income, which is explained by positive effect of out-migration on wage and income. However, the migration benefits are not big enough to make a difference on Gini index across regions. We conclude that migration does not affect regional convergence of economic indicators. This study was carried out within The National Research University Higher School of Economics’ Academic Fund Program in 2013-2014, research grant No. 12-01-0175.
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