Assessing the Impact of Migration and Digital Technologies on the Russian Labour Market Equilibrium

Sophia V. Turkanova

Journal of Applied Economic Research, 2025, vol. 24, issue 3, 901-926

Abstract: Migrant labour plays a crucial role in the labour market, providing a cost-effective workforce that can enhance domestic market competitiveness, contingent upon labour law flexibility. This study examines the complex relationship between migration and the labour market in Russia, with a specific focus on digitalization as both a structural amplifier and a key element of the national economy. Anchored in an augmented version of the classical migration theory, the research employs a two-step Generalized Method of Moments estimator to analyse Russian data from 1991 to 2021. This methodological approach addresses potential endogeneity concerns that may arise from the reciprocal influence between wage levels and migration flows. The findings of the study reveal that migration significantly influences wage levels, with effects varying from positive to negative depending on prevailing economic conditions. In addition, internet accessibility demonstrates a positive correlation with wage levels, suggesting that increased digitalization contributes to higher remuneration. However, the interaction between migration and digitalization yields an unexpected result: a negative impact on wage levels. This result may indicate the presence of a digital divide or wage saturation within the Russian labour market. The study concludes that reducing the digital divide could mitigate the issue of wage saturation. To achieve this, the research advocates for the implementation of an inclusive digital skill development scheme specifically tailored for migrant workers in Russia. Such a policy intervention would equip migrants with the necessary digital competencies to thrive in an evolving labour market and promote a more equitable distribution of wages.

Keywords: migration; wages; labour market; digitalization; generalized method of moment. (search for similar items in EconPapers)
JEL-codes: F22 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:jnjaer:v:24:y:2025:i:3:p:901-926

DOI: 10.15826/vestnik.2025.24.3.030

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