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In addition, scholars examining labour migration in the context of demography andsociology include Florinskaya, Karachurina, Mukomel, Poletaev, Tyuryukanova, Varshaver,Varshavskaya, Vitkovskaya and Zaionchkovskaya. Nevertheless, studies of labour migrants inRussia that are based on economic theory and using modern econometric methodology are rare.The relevance of the chosen topic, as well as the small number of studies devoted to the empiricalanalysis of the position of labour migrants in Russia, inspired the decision to examine this topic.Objectives of the ResearchThe aim of the dissertation is to analyse the position of foreign workers in the Russian labourmarket.The study includes the following steps:1. Systematisation of the main theoretical and empirical approaches to explaining foreign workers’positions in the labour market of the host country;2.
Analysis of foreign workers’ migration decisions and their resulting socio-demographic profilesin the economic and political contexts of Tajikistan as a sending country and Russia as a receivingcountry;3. Identifying the determinants of Tajik workers’ choices of regions as their location in Russia;and4. Estimating the scale, dynamics and sources of wage differentials between native and migrantworkers in the Russian labour market.4MethodologyThe research methodology is based on the modern theory of labour economics: the concepts ofhuman capital, the supply and demand of labour, discrimination in the labour market and variousmigration concepts.
The empirical part of the study uses econometric methods (in particular,regression analysis and decomposition methods).The theoretical basis for modelling workers’ location decisions is the neoclassical approach to theformation of benefits and costs of migration, as pioneered by [Sjaastad, 1962]. To identify factorsthat explain the distribution of migrants from Tajikistan among Russian regions, the decision ismodelled as a comparison of benefits and costs from various directions depending oncharacteristics of these directions (e.g., the situation of the local labour market, the presence of coethnics in the region, regional migration quotas and other factors) and migrants’ owncharacteristics (such as level of education, legal status or past experience in the host country).
Thistheoretical model serves as a justification for using conditional logistic regression (McFadden'smodel of choice) for empirical analysis. We performed an analysis of destination choice formigration episodes in 2008 and 2009, taking into account migration experiences of households in2007.Empirical analysis of the differences in earnings between native and foreign workers was carriedout by combining two sources of data: household surveys from the sending country (the TajikLiving Standards Surveys of 2007 and 2009 and the Tajikistan Household Panel Survey 20114)and a household survey from the host country, the RLMS-HSE for 2007, 2009 and 20115.
Toanalyse the sources of existing differences in average earnings, we applied decompositionmethods, including the parametric method of three-part decomposition, which is a version of theclassical Oaxaca-Blinder decomposition first applied by [Winsborough, Dickenson, 1971], and thenonparametric decomposition method, proposed by [Nopo, 2008].4The three surveys constitute a nationally representative panel data. The 2007 and 2009 rounds of the TajikistanLiving Standard Survey (TLSS) were prepared by the World Bank, together with UNICEF, and carried out by theNational Committee for Statistics (Goskomstat). The Tajikistan Household Panel Survey 2011 was initiated by theInstitute for East- and Southeast European Studies, in Regensburg, Germany, and was implemented in cooperationwith the SHARQ Research Center in Dushanbe, Tajikistan.5This survey data are representative for Russia and contain information on the employment and wages ofrespondents, which makes it possible to use the data to analyse the migrant–native wage gap.5Main Results1.
Both the situation in the regional labour markets (namely, the unemployment rate) andpresence of co-ethnics were important determinants of location choice for Tajik labourmigrants. Policy regulations, that is, regional migration quotas, were important as well.2. The main difference between new and experienced migrants’ behaviours in their reaction tochanges in regions’ economic situations were as follows.
Repeated migrants, unlike first-timeones, remain in regions with falling average wages. New migrants are more sensitive to thedecline in the construction sector.3. The estimated differential between average natives’ and migrants’ wages was 48% of averagemigrant wage in 2007, 39% in 2009 and 15% in 2011. The wage gap conditional on workers’productive characteristics was even higher: 73% in 2007, 57% in 2009 and 44% in 2011. Wagedifferences that could be explained by observable characteristics had a modest contribution tothe overall native–migrant wage differential. Nonparametric analyses revealed that this gap isno smaller if only comparable migrants and natives are considered, and little of the wagedifferential can be attributed to segregation.4.
The native–migrant wage gap varies among different categories of foreign workers. The sizeof the wage gap depends on experience in the host country, legal status and languageproficiency in a predictable direction, but not statistically significantly in most cases.
Bycontrast, in Moscow, the wage gap was significantly higher and decreased more slowly thanin the rest of the regions examined in the study.ContributionThis dissertation contributes to the empirical migration literature. Despite the importance of thisgroup in the Russian labour force, empirical studies on this topic that use modern econometricmethods are rare.
This dissertation complements the existing literature by studying thedeterminants of migrants’ choices regarding local labour markets and estimating the size,dynamics and sources of earnings differentials between foreign and native workers in Russia.Individual-level data from sending and receiving countries are used in the empirical analysis.The obtained results contribute to the literature on location choice. Previous studies rarelyconsidered the location choices of short-term labour migrants who make repeated work trips andthe impact that the experience of such trips has on their choices.
This study fills this gap in theliterature. To our knowledge, this is the first study to obtain any estimates on labour migrants inRussia.6The analysis of wage differentials between foreign and local workers also contributes to theliterature on the Russian labour market. Previous estimates of the migrant–native wage gap eitherconsidered different groups of migrants or can be considered biased because of a lack ofrepresentative data.
The use of unique household survey data from Tajikistan made it possible toestimate the gap more accurately. In addition, the study tested the use of a non-parametric approachto evaluate the migrant–native wage differential.Results obtained in this dissertation can be used in developing optimal policies towards migrants.Results of this study show that selecting foreign workers based on observable characteristics willnot eliminate differences in earnings, since the observables do not contribute significantly to theposition of employees. Even in absence of active policies helping migrants to obtain countryspecific knowledge labour migrants from Tajikistan as a group seem to adapt to the Russian labourmarket quite well.
Still, some policies can be considered for equalizing labour market conditionsfor native and migrant workers and possibly eliminating potential discrimination towardsmigrants.PublicationsJournal publications:1. Denisenko, M., Chernina, E. Labor migration and migrant earnings in Russia //Voprosy Economiki. 2017. № 3. Pp. 40-57.2. Chernina, E. Migrants’ location choice: the role of migration experience // HigherSchool of Economics Economic Journal.
2016. Vol. 20. № 1. Pp. 100-128. – 1,8 п.л.3. Lokshin М., Chernina Е. Migrants on the Russian Labor Market: Profile and Earnings// Higher School of Economics Economic Journal. 2013. Vol. 17. № 1. Pp. 41-74.Other publications1. Denisenko, M., Chernina, E. «People are sent by business, people go for money…» //In Mobility and stability in the Russian labour market / / Eds. V.
Gimpelson and R.Kapeliushnikov; National Research University Higher School of Economics. —Moscow: HSE Publishing House, 2017. — 529, [7] p2. Chernina E. Migrants’ location choice: the role of migration experience / MaastrichtSchool of Management. Series MSM "MSM WORKING PAPER SERIES". 2016. No.2016/3.7.
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