Russian immigration liberalization in 2007-2008: lower wages and other consequences
We explore the 2007-2008 noticeable liberalization of Russian labor immigration, perceived as a natural experiment. How it influenced the labor market equilibrium and especially wages of certain categories of Russian employees? We use various data, including remittances from Russia, and restore related hike in official and unofficial labor immigration. According to our rough estimate, the mass of gastarbeiters increased significantly, from 3.4 mln in 2006 to 4.3 mln (2006) and then to 4.9 mln (2008). This did not cause additional unemployment, but influenced wages. We follow the Borjas (2016) method of assessing the impact of natural experiments, and we are interested in (equilibrium) wage elasticities and interdependencies among the labor groups in Russia. To reveal the elasticity of equilibrium wages, responding to 2007-2008 inflow of (mostly unskilled) labor, we run difference-in-difference regressions on RLMS data. For some Russian residents, their wages responded to new policy noticeably. Namely, the most affected were the pre-established Asian migrants: they lost about 14-17.5% wages in response to 8%-14% increase in similar working force. The ethnic Russians with blue-collar or low qualification lost about 4.5-5.5% of wages, while the impact on white-collars was insignificant. Arguing about the macro-economic consequences of such liberalization policies for Russia, we thereby point out the negatively affected categories of employees and the degree of their losses, which can be compared with additional GDP generated.
This book focuses on the questions of how territorial differences in productivity levels and unemployment rates arise in the first place and why territorial differences in labor market performance persist over time. Unemployment divergence and unemployment club convergence have been touched on in a large number of works and have recently also been studied using spatial econometric analysis. In this book we aim to develop the debate to include several important new topics, such as: the reasons why structural changes in some sectors cause slumps in some regions but not in others; the extent to which agglomeration factors explain regional imbalances; the degree of convergence / divergence across EU countries and regions; the role of labor mobility in reducing / increasing regional labor market imbalances; the impact of EU and country-level regional policy in stimulating convergence; and the (unsatisfactory) role of active labor market policy in stimulating labor supply in the weakest economic areas.
Der Sammelband vereint herausragende Beiträge der Konferenz Welt und Wissenschaft 2017 an der National Research University Higher School of Economics in Moskau.
The chapter examines the role of language and cultural space in shaping and/or reshaping the identity of both first- and second-generation Georgian teenage students in the state secondary school in Moscow with a Georgian ethnocultural component. By analyzing the students’ linguistic behavior in the classroom, an attempt is made to examine how students negotiate their identity and sense of belonging while outside Georgia. More specifically, this study shows how Georgian students (re)shape their identity in light of linguistic, cultural, and spatial changes taking place in the institutional settings of the Moscow school. The language of instruction in the school is Russian. However, taking into consideration the fact that the majority of the school teachers are ethnic Georgians, it appears that this has implicit (and in some cases explicit) underpinnings in relation to the students’ ethnic identity orientation. The results demonstrate that high institutional support at school as well as the students’ high sense of group belonging which is encouraged by the school’s administration and teaching staff contributes to students’ identity construction process. The evidence indicates that the blurring of ethnic and cultural identity boundaries in the context of the Russian capital city has an effect on the students’ linguistic behavior at different levels (phonology, morphology, syntax, and lexicon).
We study barriers to labor 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.
The transition to market economic systems in the countries of Central and Eastern Europe and the former Soviet Union involves fundamental shifts in the sectoral allocation of resources, in particular, dramatic changes in employment structures. Development of services in Russia turns to be more impressive than in many other transitional countries. This paper uses the Baumol-Fuchs model of the service sector expansion to estimate underdevelopment of services in Russia prior the transition and measure the progress in catching-up that has taken place thus far. Based on the Russian Longitudinal Monitoring Survey (1994-2000) empirical analysis demonstrates that sectoral variation in the difference between withdrawal from and entrance to the labor force is the main reason of changing distribution of labor. For job-to-job transitions low quality of current job matches, tenure effects and labor market segmentation are the most important explanation of inter-sectoral labor mobility.
Using two rounds of nationally representative household survey data in this study, we measure the impact on poverty in Nepal of local and international migration for work. We apply an instrumental variables approach to deal with nonrandom selection of migrants and simulate various scenarios for the different levels of migration comparing observed and counterfactual household expenditure distribution. Our results indicate that one-fifth of the poverty reduction in Nepal occurring between 1995 and 2004 can be attributed to higher levels of work-related migration and remittances sent home. We also show that while the increase in international work-related migration was the leading cause of this poverty reduction, domestic migration also played an important role. Our findings demonstrate that strategies for economic growth and poverty reduction in Nepal should consider aspects of the dynamics of domestic and international migration.
During many years Tajikistan has been the world leader in terms of the ratio of remittances to GDP. Late 2000s and early 2010s were the years of migration boom when the country’s dependence on financial streams from migration was established and the effects of migration started being evident. Much of these effects were driven by the characteristics of migrants and their households and the context of the country. This chapter reviews recent evidence on the effects that migration has on the lives of households in Tajikistan. Using data from a panel household survey, this chapter describes migrants’ profile and factors of migration decision with a special focus on migrant skills and their households’ wealth.
Viewing a textbook as a tool of construction of framework for interpretation of social environment, we focus on the content of Russian school books for children of migrants. Within the framework of the theories of intergroup ideologies and Stereotype content model, we evaluate the character of representation of different cultures and their representatives in various social contexts The results show that the receiving population occupies “high warmth and high efficacy”, while migrants occupy “high warmth and low efficacy” quadrant, and a difference in the representation of migrants: children are included in communication with the receiving population, whereas adults are isolated.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.