Working Paper: CEPR ID: DP9675
Authors: Sergei Guriev; Elena Vakulenko
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 Codes: J61; R23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Financial constraints (D10) | Migration decisions (F22) |
| Income increase in poorer regions (R11) | Outward migration (F22) |
| Wealthier regions income (D31) | Migration relationship follows push-and-pull logic (F22) |
| Income threshold of $3000 (H53) | Migrants willing but unable to move (J61) |
| Diminishing importance of poverty traps (I32) | Financial development (O16) |
| Increased income (E25) | Higher outward migration from poorer regions (R23) |