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Migrant workers in urban labour markets in India: wage differentials, assimilation and occupational attainment

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  • M. Imran Khan

    (Centre for Development Studies)

Abstract

The paper examines the wage differentials and returns to human capital of migrant and non-migrant workers in the urban labour markets in India. Using unit-level data from the Employment, Unemployment and Migration Survey (2007–2008), the regression analysis examines the effect of various factors particularly human capital and years since migration in determining wage differentials in different specifications. The results showed that the migrants (both rural and urban) earned higher daily wages than non-migrant workers across states, but the wage advantage was higher for urban migrants than rural migrants both in regular and casual work. Segregating the wage gap into different observable factors, the results showed that the migrant wage advantage was mainly explained by the difference in nature of employment, type of occupation, location of job and other socio-religious factors but not due to differences in human capital. However, in case of urban migrants, education plays a major role in explaining the wage advantage over non-migrants, particularly in regular wage work. Even though the migrants showed a higher wage advantage, the gap reduced with the duration of stay at the destination labour market. While modelling the occupational attainment among migrants and non-migrants, the study found that education plays an important role in enabling migrants, especially urban migrants, get access to higher-paying occupations.

Suggested Citation

  • M. Imran Khan, 2017. "Migrant workers in urban labour markets in India: wage differentials, assimilation and occupational attainment," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(3), pages 437-459, September.
    • Handle: RePEc:spr:ijlaec:v:60:y:2017:i:3:d:10.1007_s41027-018-0100-0
    DOI: 10.1007/s41027-018-0100-0
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    References listed on IDEAS

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    1. M. Imran Khan, 2016. "Migrant and non-migrant wage differentials: a quintile decomposition analysis for India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(2), pages 245-273, June.
    2. Andrews, Martyn J. & Clark, Ken & Whittaker, William, 2007. "The Employment and Earnings of Migrants in Great Britain," IZA Discussion Papers 3068, Institute of Labor Economics (IZA).
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    Cited by:

    1. Mohd Imran Khan, 2021. "Consequences of Labour Migration on Wages and Employment: Evidence from India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(1), pages 23-47, March.

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    More about this item

    Keywords

    Internal migration; Wage differential; Assimilation; Human capital; Occupational attainment; India;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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