Consequences of Labour Migration on Wages and Employment: Evidence from India

Mohd Imran Khan ()
Additional contact information
Mohd Imran Khan: NMIMS

The Indian Journal of Labour Economics, 2021, vol. 64, issue 1, No 2, 23-47

Abstract: Abstract This paper evaluates the impact of migration on the labour market outcomes of non-migrant workers in India using unit-level data from the ‘Employment Unemployment and Migration Survey’ (NSSO 64th Round, 2007–2008). After correcting for endogeneity bias of migration using an instrument variable approach, the overall results of the study suggest that the inflow of migrant workers increases the wages of non-migrant workers but does not affect their employment. Disaggregating the analysis by sectors, the study finds a positive wage effect in the formal sector, which is more pronounced among the high-skilled workers. In the informal sector, the results indicate an adverse employment effect among both high- and low-skilled workers. The positive wage effect in the formal sector suggests complementarity between migrant and non-migrant workers. The adverse employment effect in the informal sector is possibly due to a preference for migrant workers over non-migrant workers. The estimated results are consistent with alternate specifications.

Keywords: Internal labour migration; Urban labour markets; Formal and informal sectors (search for similar items in EconPapers)
JEL-codes: J20 J30 J40 J46 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s41027-020-00294-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ijlaec:v:64:y:2021:i:1:d:10.1007_s41027-020-00294-7

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41027

DOI: 10.1007/s41027-020-00294-7

Access Statistics for this article

The Indian Journal of Labour Economics is currently edited by Alakh Sharma

More articles in The Indian Journal of Labour Economics from Springer, The Indian Society of Labour Economics (ISLE) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().