Wages’ Impact on Employment in the Extreme North of Russia

Abstract

The article examines the wages’ impact on employment in the Extreme North of Russia. The paper highlights the unique features of the labor markets of the Extreme North, which could influence on the labor supply and demand. Using the aggregate regional data from 2005 to 2013 the author estimates fixed effects models with the independent variables such as the number of employed and unemployed and migration balance. The study shows that in the Extreme North of Russia wages significantly affect not only the number of employed, but also the number of unemployed and migrant workers. The paper also reveals that the labor supply exceeds its demand and migration plays a key role in balancing the labor markets of the mentioned territories

Keywords

• the Extreme North
• regional (local) labor markets
• employment
• labor demand
• labor supply
• wages
• Russia