How Does Internal Migration Affect Equality of Income? A Comparative Study of Russia and Germany since the Collapse of the USSR

Student: Rengeling Nikolas

Faculty: Faculty of World Economy and International Affairs

Educational Programme: Master

Year of Graduation: 2014

<p><i style="font-family: arial, sans-serif; font-size: 13px;">This paper analyses the relationship between internal migration and equality of income in the Russian Federation and Germany. It introduces two mutually exclusive hypotheses, one that predicts a negative and another that predicts a positive relationship between the two variables. Using a theoretical framework based on Perroux’s growth pole model, the Roy model and the gravity model of migration, the comparative study finds evidence that there is a positive relationship between internal migration and equality of income in Germany, but not in Russia. That is that in Germany, more internal migration leads to income being less equally distributed. The link between the two variables is stronger in East than in West Germany and slightly stronger before 2008 than in the period after.</i></p>

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