The Impact Of International Migration On Wages In Russia Labor Market

1990s, Russia faced a lot of problems because of dramatic economic transition and social transformation. Population has always been a tough issue in Russia. To deal with this problem, the Government of the Russian Federation put forward series of positive policy to attract international immigrants. With the increase of international migration in Russia, problems keep emerging. In recent years, international migration has been a major concern in Russia. Different sectors of the community have expressed their own points of view over this issue. What impact will immigration have on Russia’s economics? Under this background, this article studies the effect of international immigration on wages in Russia labor market with the Area Approach based on previous research to reflect immigration’s economic influence. Above all, there are five parts.First, the introduction part tells the study background and meaning. Next it is the literature review. It also includes the structure introduction and the innovation and disadvantage of thesis.The First chapter gives us the conception on international immigration and the theory foundation of immigration’s impact on wages in labor market of the destination country. There is difference on international immigration conception between the international standard and Russia’s. Then, this article introduces four theories on our topic:Free Trade Theory, Production Theory, Labor Market Segmentation Theory and Human Capital Theory.The second chapter states Russia’s population stage and its immigration scale. First, we talk about Russia’s population crisis. Next comes Russia’s immigration introduction, including immigration scale and Immigrants’jobs.The third part is the empirical part. Based on administrative division of Russia, we divide Russia into seven sectors (the Center Area, the Northwest area, the Ural Area, the South Area, the Volga Area, the Siberia Area and the Far East Area) to research the impact of immigration on wages in Russia’s labor market from 2003 to 2013 with Panel Data Model after the data presentation. The empirical result shows that the increase of immigration in Russia will not lower the wage; on the contrary, it will promote the wage level. Subsequently, we have the Case analysis on the Center Area and the Volga Area, the top two most immigration destination. On the basis of our study, we support the opinion that the entrance of international immigration has good influence on Russia’s economic and will accelerate its development.The last part is the conclusion part. In addition to the presentation of this article’s conclusion, we give some thought of China’s immigration in Russia based on our conclusion.