Does Migration Affect Wages in Russian Cities? Empirical Microdata Analysis

Abstract

The article explores the impact of migration on wages in Russian cities. The research was carried out on the basis of the data collected by the authors in September–October 2017 in the administrative centres of the subjects of the Ural Federal District, Russia. The aim of the study was to find out whether migrant workers are complements or substitutes to local workers in the local labour markets of the Russian cities. Econometric models were estimated using OLS and GLS methodology. The OLS results showed that migration does not affect wages in the cities. The GLS estimations were also statistically insignificant for the local employees with higher education, but for those with primary and secondary education, migration demonstrates a positive and statistically significant impact on an individual’s wages. It gives us reason to suggest that migrant workers are complementary to the local workers with primary and secondary education.

Does higher population matter for labour market? Evidence from rapid migration in Canada

“…Similarly, a micro-level study was conducted on Russian cities. Among the highly educated individuals, migration has an insignificant effect on their wages while the authors find a complementarity for workers with primary or secondary education (Giltman et al, 2018). The study finds that migrants have a positive impact on low-skilled native workers' wages hence being a complement to these workers.…”