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Migrant and non-migrant wage differentials: a quintile decomposition analysis for India

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  • M. Imran Khan

    (Centre for Development Studies)

Abstract

The objective of this paper is to quantify the wage gap between internal migrant and non-migrant workers in India. Using unit-level data from the National Sample Survey (NSS) for the years 1999–2000 and 2007–2008, we analysed the wage differential with Oaxaca-Blinder decomposition adjusted for sample selection bias. Further, we analysed the wage gap across the distribution using quantile decomposition analysis. The estimated results show that, on average, migrant workers earn higher wages than non-migrant workers and have higher returns to education in both rural and urban areas. However, migrant workers belonging to Scheduled Tribes (ST) and Scheduled Castes (SC), and female migrants, have a wage disadvantage compared to non-migrant workers with similar characteristics. Across the wage distribution, the wage decomposition shows, wages are lower for migrants than non-migrants at the lower end but higher at the higher end. The major part of this trend is explained by observable characteristics. The wage disadvantage at the lower end seems to be because of the over-representation of females among migrants in casual work. When the analysis was conducted only for regular male workers, it was found that migrants have a wage advantage across the wage distribution.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:ijlaec:v:59:y:2016:i:2:d:10.1007_s41027-017-0054-7
    DOI: 10.1007/s41027-017-0054-7
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    Cited by:

    1. Mohamed Saalim & Sobin George, 2021. "Determinants of Wage Differentials Among In-Migrant Workers: Insights from a Primary Study Conducted in Kozhikode District, Kerala, India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 981-997, December.
    2. 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.
    3. 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.
    4. Balakarushna Padhi & Udaya S. Mishra & Urmi Pattanayak, 2019. "Gender-Based Wage Discrimination in Indian Urban Labour Market: An Assessment," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(3), pages 361-388, September.

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