Published in «Russian Journal of Labor Economics»3 / 2019
DOI: 10.18334/et.6.3.40920

Cities attractive to migrants: rising salaries or housing prices?

Giltman Marina Andreevna, University of Tyumen, Russia

Sumik Elena Aleksandrovna, University of Tyumen, Russia

Города, привлекательные для мигрантов: рост зарплат или цен на жилье? - View in Russian

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Highlights:
 According to the model of local labour markets, cities with higher wages attract labour migrants, which increases housing prices.
 Among the regional capitals of the Ural Federal District in 20002017 the highest nominal and real salaries were in Khanty-Mansiysk and Salekhard.
 The fastest growing salaries were in Yekaterinburg, Chelyabinsk and Tyumen.
 In Tyumen, Yekaterinburg and Chelyabinsk netmigration was positive in each year for the period of 20002017.
 From 2000 to 2017 the population of Tyumen, Khanty-Mansiysk and Salekhard has grown most significantly.
 The highest housing prices have developed in Yekaterinburg, Tyumen, Khanty-Mansiysk and Salekhard.

Abstract:
The article considers the trends in salaries and housing prices in relation to in- or out-migration from the administrative centers of the Ural Federal District: Yekaterinburg, Chelyabinsk, Tyumen, Kurgan, Khanty-Mansiysk and Salekhard. We chose those particular cities because they are located approximately at the same distances from the western and eastern parts of the country, but at the same time they are different in size, level of economic development and migration intensity. The theoretical basis was the theory of local labor markets. The study was conducted on the basis of a comparison of time series for 20002017, using open data from Rosstat. Comparing the dynamics of nominal and real salaries, current and deflated housing prices and migration growth rates in the cities, we came to the conclusion that one of the main assumptions of the theory of local labor markets, which is that higher wages attract migrants what rises local housing prices, in our case-cities is rather fulfilled.

Keywords:

housing prices, labour market, migration, salaries (wages)

JEL-Classification: J31, J61, R23, R31

Citation:
Giltman M.A., Sumik E.A. (2019). Cities attractive to migrants: rising salaries or housing prices? [Goroda, privlekatelnye dlya migrantov: rost zarplat ili tsen na zhile?]. Russian Journal of Labor Economics, 6(3). (in Russian). – doi: 10.18334/et.6.3.40920.


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