DOES MIGRATION AFFECT WAGES IN RUSSIAN CITIES? EMPIRICAL MICRODATA ANALYSIS
DOES MIGRATION AFFECT WAGES IN RUSSIAN CITIES? EMPIRICAL MICRODATA ANALYSIS

Summary/Abstract: The article explores the impact of migration on wages in Russian cities. Theresearch 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 orsubstitutes to local workers in the local labour markets of the Russian cities. Econometricmodels were estimated using OLS and GLS methodology. The OLS results showed thatmigration does not affect wages in the cities. The GLS estimations were also statisticallyinsignificant for the local employees with higher education, but for those with primary andsecondary education, migration demonstrates a positive and statistically significant impacton an individual’s wages. It gives us reason to suggest that migrant workers arecomplementary to the local workers with primary and secondary education.

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