India is characterized by internal migration: it moves labor out of low productivity regions and industries into high productivity urban and industrial complexes and it generates large flows of remittances that alters household welfare and demand in the regions. However, there is also circular and seasonal migration, a high degree of informality as well as unequal access to social protection that defines the migration system in India, which may decrease the net benefits of migrants and host economies. The evidence on the economic effects of migration patterns in India presented in this research paper is synthesized in terms of a mixed evidence approach: (i) national descriptive statistics and official estimates, (ii) secondary quantitative evidence through peer-reviewed research, and (iii) an analytical framework that associated the drivers of migration and effects at both origin and destination and macro levels. According to official evidence, inter-state labor mobility is significantly greater than the older Census-based annual flow estimates; rail-based estimates suggest that there are inter-state flows of almost 9 million annually in the early-to-mid 2010s and a greater number of inter-state labor migrants than simple Census flows. Descriptive findings also prove that internal movements are predominantly of short-distance/intra-state type and that marriage and family-related factors predominate in total migration, with the migration due to work being of particular importance in the case of male migrants. The discussion incorporates micro evidence of the effects of migration in increasing earnings and decreasing the risk of poverty in terms of remittances and diversification, yet also how barriers (state borders, networks, costs of living in the city, lack of portability) may create the phenomenon of migration frictions and misallocation. A policy package is seen as the conclusive part of the paper where migration is viewed as a development strategy: portability of entitlements, urban inclusion, better labor market intermediation, and data systems that identify circularity.
disha et al. (Thu,) studied this question.