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Short-term migration and consumption expenditure of households in rural India

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  • S. Chandrasekhar

    ()
    (Indira Gandhi Institute of Development Research)

  • Mousumi Das

    ()
    (Indira Gandhi Institute of Development Research)

  • Ajay Sharma

    ()
    (Indira Gandhi Institute of Development Research)

Abstract

In 2007-08, short-term migrants constituted 4.35 per cent of the rural workforce. A total of 9.25 million households in rural India had short-term migrants.Using a nationally representative data for rural India, this paper examines differences in consumption expenditure across households with and without a household member who is a short-migrant. We use an instrumental variable approach to control for the presence of a short-term migrant in a household. We find that households with a short-term migrant have lower monthly per capita consumption expenditure and monthly per capita food expenditure compared to households without a short-term migrant. Short-term migrants are not unionised, they work in the unorganised sector, they do not have written job contracts and state governments are yet to ensure that the legislations protecting them are properly enforced. This could be one of the reasons why we do not observe higher levels of expenditure in households with such migrants.

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Bibliographic Info

Paper provided by Indira Gandhi Institute of Development Research, Mumbai, India in its series Indira Gandhi Institute of Development Research, Mumbai Working Papers with number 2014-009.

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Length: 36 pages
Date of creation: Mar 2014
Date of revision:
Handle: RePEc:ind:igiwpp:2014-009

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Keywords: Short-term migration; Household consumption; Rural-urban linkages;

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  1. Alan de Brauw & Tomoko Harigaya, 2007. "Seasonal Migration and Improving Living Standards in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 89(2), pages 430-447.
  2. Massimiliano Cali & Carlo Menon, 2009. "Does urbanisation affect rural poverty? Evidence from Indian districts," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 33205, London School of Economics and Political Science, LSE Library.
  3. Jessica Hagen-Zanker & Carlo Azzarri, 2010. "Are Internal Migrants in Albania Leaving for the Better?," Eastern European Economics, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 48(6), pages 57-84, November.
  4. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," Boston College Working Papers in Economics, Boston College Department of Economics 545, Boston College Department of Economics, revised 14 Feb 2003.
  5. Alan De Brauw, 2010. "Seasonal Migration and Agricultural Production in Vietnam," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 46(1), pages 114-139.
  6. Joshua Angrist, 1999. "Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 99-31, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Ashok Kotwal & Bharat Ramaswami & Wilima Wadhwa, 2011. "Economic Liberalization and Indian Economic Growth: What's the Evidence?," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 49(4), pages 1152-99, December.
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