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UNIT Employment AND DEVELOPMENT

Structure

22.1 Introduction
22.2 Causes Migration

Earnings and Employment Opportunities
22.2.2 Family and Network
22.2.3 Distance
22.2.4 Wealth and Capital Markets
22.2.5 Family Strategies to Contain Risks
Availability and quality of Amenities
22.2.7 Incidence of Violence, Diseases or Disasters
22.2.8 Migration Control and Incentives
22.3 EconomicConsequences of Migration
22.4 Internal in India
22.5 Rural and Migration Flows
22.6 Characteristicsof Migrants
22.7 Migration and Over-Urbanisation
22.8
22.9 Exercises


22.1 INTRODUCTION

Article 19 of the Constitution of India guarantees all its citizens, the right to reside and settle anywhere in India: This freedom of movement is considered ideal for the of any free and liberal economy. A change in the place of residence at least once is quite common in a wide range of countries. Census data show in five years from 1976 to
1981,7 per cent of India's population moved within the country.


CAUSES OF INTERNAL MIGRATION

Migration is a complex phenomenon with a multiplicityof causes, which can be segregated into
'push' and 'pull' factors.

22.2.1 Earnings and Employment Opportunities

It is well established the in earnings between origin and destination, the likely are working age adults to move. Many migrants to urban areas enter
the sector. For some this is a transitory phase prior to more formal However, statistical studies of these are plagued by the lack of precision in defining the informal sector and the evidence does not make it clear whether the formal or informal sector offers pay to observationallyequivalent workers.


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Migrants to town less observationally equivalent natives, but the evidence indicates that gap disappears within a few years and may even Findings on whether differences in unemployment rates between locations promote migration are mixed. Limited evidence suggests that migrants often identify their urban job before migrating, migrants do appear to search for work after moving, either while in temporary or while openly unemployed. However, at least one study maintains off- migration in developing countries will cease only when the earnings gap is entirely closed. It has also been argued that unemployed workers may have at least as high a chance of their home setting where information and contacts are more readily available.

The location of newly created opportunities depends in part upon the development strategy adopted. The that substitution leads to employment concentration cities, lacks systematic testing though a case study of India suggests that liberalisation has been a in promoting the emergence of new towns.

It been that large towns offer a greater diversity of and hence a better of reemployment the event of a lay off. This render large towns more attractive to migrating

22.2.2 Family and Network

Possessing a network of family and friends in town may migration into town. Conversely, a well-developed at home discourage departure. Migration at the time of marriage, to join or accompany a spouse, does seem A studies also suggest that parents have the welfare of their offspring in mind when their own decision. Urban often initially settle in ethnically similar neighbourhoods, suggest networks lower the effective cost of moving in some manner. I

Distance

Migration over short distances is common to remote locations. greater cost of moving lack of information remote
alternatives, or less alienation in a nearby setting remains

Wealth and Capital Markets

or imperfect local capital markets may encourage out-migration either directly restrictions on the ability of families to borrow or indirectly through effects on
employment creation.

The cost of financing costly migrations is probably lower for wealthier families. This has two important implications: first, other things being equal, migration may be richer and this in exacerbate the inequality in incomes;
second, as a region wealthier may actually increase as financial constraint is reduced.

Empirical evidence these two is mixed and Only a few cross-family studies the wealth effect and the results are too mixed to reach any conclusion. Some historical studies do rising emigration as GDP increases but this is





probably largely a reflection of the demographic transition and altered patterns of employment rather than an alleviation of a financing constraint.

22.2.5 Family to Contain Risks

One way that families insure themselves is by having members migrate to locations where times of adversity do normally coincide with at home. Remittances between the base and migrant then enable consumption smoothing.

is some evidence consistent with the remittance portion of this scenario. However no direct test of whether migration is greater with higher economic risk seems to exist.

22.2.6 Availability and Quality of Amenities

Improved amenities in a location attract industry or permit agricultural expansion; To the extent that this results in employment expansion or higher wages out-migration
be discouraged in-migration encouraged. Improved local amenities may also have a direct effect upon migrant's decisions, simply by making life in this setting more attractive.
Unfortunately no evidence appears to exist on the effects of amenities on migration outcomes
in the developing countries.

22.2.7 Incidence of Violence, Diseases or Disasters

It is obvious that episodes of violence and natural disasters result in mass either of internally displaced persons or of international refugees. the extent to which on-going violence, political repression risk from disasters increase the flow of migrants is far less well documented.

22.2.8 Migration Control and Incentives

A few countries have attempted to restrict migrations. Unless the state is prepared to take draconian measures, such controls are usually ineffective. In a number of contexts
it has been that expelled migrants soon return. In of the socialist states access
to jobs, housing, food rations and other state benefits have been tied to a specific location, effectively preventing migration by removing the incentive to work. Wawever, least in
China, the emergence of a more market-oriented system eliminated efficacy of these
controls and migration has duly expanded.


ECONOMIC CONSEQUENCES OF MIGRATION

A mobile labour farce can be an important ingredient in more efficient production in an economy. Migration for wage gains enhances the efficiency of production. There are, however, few studies of the total of internal migration to productive efficiency to a generalisation.

Migration may also impact the rate of savings and in economy and perhaps growth. In particular, it is commonly held that migrants save a large





fraction of their earnings because risk-averse migrants for their return to a lower and less certain income and because the marginal utility derived from consumption while away from the family is low. However, supporting evidence in the context of temporary internal migrants is lacking. Moreover, temporary migration may only raise the propensity to save


Migration may not only change the efficiency of production but also profoundly alter the distribution of income a number of channels.

Migrants presumably gain migration unless they make errors in judgement, or a gamble with respect to migration fails to pay off or migration is not of the migrant's own free will.

Nonetheless the extent of social mobility associated with migration may vary. Evidence India suggests a tiny group of urban fare extremely poorly, average enjoys a living standard non-migrants particularly
sometime in town.

Migration also affects the people, both at origin and destination. One way that this happens is by altering the of earnings among non-migrants as the migrant labour shifts. It is not obvious whether wages at origin increase those at destination decline. In the longer the departure of skilled migrants can raise the returns to education
-and training of those behind, resulting in greater investments in human capital and higher income. Countering this are at least two forces.

First, there is evidence of agglomeration of economies driven by a pool of well- .
educated workers. This can that departure of skulled personnel actually lowers to education.

Second, education of children left behind by migrating parents faces two apposing forces; migration may provide resources to finance but parental presence lower to schooling.

other major route through which migration may impact incomes of non-migrants is through extent to poor and rich benefit from this is a matter of some dispute. Early village studies in India suggest that rural-urban migration is rare among the very poorest of rural common among agricultural labouring families, declines again among somewhat better off village households, but educated children of the rural elite move to town. Combined with village study observations that net town to village are small and that the children of the wealthy are more likely to retain their rural ties remit, this implies that remittances may largely benefit relatively rural families.


22.4 IN INDIA

Demographersview migrationunder four broad a) Withinrural areas
b) urban areas






c) From rural to urban areas and d) From urban to rural areas.
These categories, of course, encompass inter-state, intra-state and The 1991 census analysed the reasons of migration under the categories of employment, education, marriage, family relocation, natural calamities and others.

The total migrant population as per the census of 1991 was 82 roughly 9 per cent of the country's population. Nearly two-thirds of these were women and only that number (27,255,302) were men. Of the total 85.1 per cent had spent between
9 years in the place of residence of the last enumeration. Of the total migration across the country, 13.5 per cent took place between states.

The break up for different states presents interesting variations. Maharashtra received largest number of migrants followed by Delhi West Madhya Pradesh and Uttar Pradesh The largest
out of any state is Uttar Pradesh followed by with half that number. Tamil Nadu, Pradesh, Orissa, represent less equal figures for migration into and outside the state. Kerala took in
migrants while left it. Gujarat and Bihar provide an interesting in
terms of migration into and outside the While incoming population was the outgoing was By contrast, the incoming for Gujarat was double
that of Bihar at and outgoing population of stood roughly at a quarter
of the population leaving

Indeed migration into and out of different states could be attributed to tlzeir performance various development indicators such as industrialisation, education and availability of
employment.

While Bihar and provide critical variations, one would also have to factor in the area and population of a state in assessing patterns. For example, large migrations into Pradesh and Madhya may have to be viewed against large population in these states. International migrants only 1.3 per cent of the total migrant population.

India is constantly termed a nation with an immobile population. The volume of internal migration has been increasing steadily throughout the yet percentage in migration has been viewed as small in comparison to the mobility transitions occurred in parts of sub-Saharan Migration in India has traditionally been dominated short term rural to movements, which account for more than sixty per cent of all migrations and are comprised mainly of women between their and homes upon marriage. Long distance urban-ward migrations form only a minority of all movements within India, leading to the literature to term India's population as stubbornly and remaining in the early stages of the mobility transition.

The primacy of the agricultural sector in the Indian economy has resulted in tying the population to the It is suggested that long distance urban ward migration would only occur once the Indian economy develops a more industrial base. In addition to this, the dominance of agriculture has succeeded in creating a culture of settlement cultivation,


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which it is suggested, acts to discourage migration. process of early marriage and the tradition of marriages between people from nearby villages and territorial endogamy has resulted in both early adult responsibilities and reduced the need to migrate long distances. Finally, it is suggested that such is the economic cultural diversity of India, with some states larger in size than some European countries, that the sheer distances involved and the potential socio-economic adaptations required are in sufficient to discourage long distance migrations.


22.5 RURAL AND MIGRATION FLOWS

During the 1960s migration was still dominated by local migrations that had for most of the However, this period witnessed increase in the of short distance rural to urban migrations to local and regional urban centres. Long migration, although still a minor aspect of India's system, was dominated by to urban areas, which involve up the hierarchy. This decade also represents a period of substantial growth in urban and associated stagnation of towns. this period saw the beginning of the urbanisation process in India, although it started primarily in the form of long distance moves. The increase in urbanisation has continued as the importance of rural to urban
increases in the Indian migration During the 1960s the outflow
to areas 14.6 per cent of all migration. By 1970 this had increased to 15.3
per cent and to 17.7 per cent in 1991.

Despite the increase in rural-urban migration in India since the 1960s rural-rural migration continues to dominate migration (Table 1). In per cent of all migration had been between rural areas. of those participating in migration are female, due to the prevalence patriarchal marriages. Although such a process has been in operation throughout the country, has been suggested by some the Indian market has become wider, with longer distances apparent in the marriage system. A product of this has been an increase in the distances involved in rural-rural migration with an increase in of inter-state rural bound migrations. The development of increased agricultural methods and the resultant increase in demand for agricultural labour in west of acted to precipitate an in the
of long rural-rural movements by increasing the opportunities for agricultural work.

The remaining combinations of rural and urban migrations and urban-urban) to only minor aspects of migration system India. Urban-urban migration accounts for approximately 12 per cent of the total migration since the increase in during the 1960s. A majority of urban-urban migration is in of an upward the hierarchy. It has been argued that such migration is dominated by public those employed the service sectors who wish to improve employment by moving to larger urban areas with potentially higher wages. Thus, most movements occur from areas low per capita incomes to with higher per capita










Urban to has consistently constituted the lowest percentage of total migration (about 6 per cent in 1991). In general it is thought that an increase in rural to urban migration precipitates a parallel move of people out from urban areas into urban suburbs. However there exists no empirical evidence to suggest that this theory of migratory behaviour is applicable in the Indian context. It has been pointed out the lack of employment in urban areas is the major factor behind urban-rural migration. In addition it is argued that return of workers may form a substantial section of this migratory stream. It
is also reported that return may be those who have finished their economically productive lives in the urban are returning to their rural origins. Those own agricultural land are the most lilcely to part in of migration.


CHARACTERISTICS MIGRANTS

The study of the characteristics of mobile population is an area neglected Indian despite the availability of census data on by age, sex and
A majority of literature on this subject refers to small-scale studies, which the general of all are hypothesised. The principle characteristic of Indian migration is age selectivity has been shown that the age group
20-35 are by far the migratory group. migrants tend to be younger than their male due to practice of patrilocal marriages. This age selectivity is apparent in all migration at both the intra-state and inter-state level, and this is the only characteristic is universal to all migration streams India.

Each of the migration in operation in India is strongly sex selective. At the intra- state level females dominate the rural to rural stream, accounting for two-thirds of all migrants. This is attributable to the process of marriage migration by females between rural areas. rural-urban and urban-urban streams are both predominantly male oriented, at the inter-state level all streams are dominated, The ratio of migrating to the total migrants varies inversely with the distance of migration, emphasising the domination of the long distance rural-urban and urban-urban movements. main reason such sex selectivity lies in the causes of migration. It is hypothesised that predominantly economic reasons, whilst females for marriage. those streams with urban destinations perceived greater gains will attract more male than female migrants. males to urban areas, remain behind to provide a sense of familiar security in rural areas.

A study of the effects of male selective migration Kerala discovered at household level, the major was an improvement income due to the flow of remittances. However, this male of rural to migration is not uniform India. Such migration is more selective of males in the of India and in south there is a trend towards increasing female participation in migration. The greater male selectiveness of migration the north has been attributed to both the caste and the religion. prevalence of scheduled castes the led to female participation in migration. As such castes are usually landless and for

separation to ensure land in the areas is reduced. The stronger influence of Islam in the north restrained female migration, resulting in masculine sex ratios in
.cities.




However, the participation of in all streams has been increasing during, the last two decades. This is particularly apparent rural-urban stream, has been attributed to increases the rates of female participation in education and the labour force. It has been reported that the untouchable class and in south have shown increases in their rates of labour force participation and that this precipitated the migrating of for reasons. The increasing numbers of urban migrants has lead to in number Female in work in urban areas of south India. increase in educational participation increased labour force thus creating economic incentives for females to


Migration theory suggests that rural to urban migration is selective with originating low-income groups as a result remaining in the
low-income strata once in urban areas. a process does adequately explain
the selectivity of rural-urban in India. In India it is both the poor and the rich who migrate, rather than, in general, the poorest, middle or the


It is that for pool; migration to urban areas is a survival strategy against decreasing productivity rural areas, whereas for the such migration is a strategy of accumulation. The position of a migrant may only provide the for migration, but also provide means of migration.

The poor do not have to the move; thus they instituted in the rural areas, while becoming through the introduction of labourers from other rural areas. It been shown the propensity to migrate to an area is highest educated people in rural areas. As a result the depletion of rural areas in India is
occurring the out-migration of capital holding education sectors. The availability of western style in the urban areas, particularly the mega cities, provides the such migrants. The rural areas may greater economic
for uneducated for which is scarce in cities. Also, it has reported the upper castes are migratory than lower castes suggesting castes that are longer integrated into village economy mobile
others.


Migration a of short distance female dominated movements
past decades seen slight increases in the involved in migration, with the
gradual of migration streams with urban destinations involving longer distance movements. Recent changes in the activities of females are acting to slowly the sex selectivity of streams. The growth of urban areas and the resultant creation of industrial employment have created incentives for migration, based predominantly on urban areas.


22.7 AND OVER-URBANISATION


A consequence of is over-urbanisation. Over-urbanisation involves both the sheer growth of of a national population living cities as well as




the concentration of the population particular cities. To the that
urban migration leads to a misallocation of labour between the and sectors and increases the cost of providing for a country's growing population, over-urbanisation remains a problem. It used to be assumed in overpopulated countries like India, Pakistan, Bangladesh, Egypt and in of America that the productivity of the rural labour is zero. But in rural areas where uncultivated land is still available and where institutional on the of can be overcome, rural-urban migration does entail a loss of potential agricultural output.

It should also be reinembered that a large proportion of the rural population is engaged in full-time or part-time non-farm activities. Labour utilisation by farm families is high. The inefficiency of current rural-urban migration patterns is the result of the loss of potential and the inability of cities to fullyemploy their existing force to productive
ends.

There is a tension between individual and national interests in problem of urbanisation. Despite the inefficiencies at the aggregate or national level, at the individual level, most migrants that they are motivated to move for economic reasons that they have improved condition. For individual rural dwellers, migration be
,rationalresponse to realities and it is not so easy to dismiss the advantages to be gained from the move. But what:about the pull on resources
by the migrants from point of view of the state? And what are developing states themselves contributing to the problem?

National policies do indeed contribute to over-urbznisation. When severe imbalances in exist between city and countryside, people are forced to leave
in search of urban jobs.

National policies bringing this include rigid minimum urban wage policies, over valued foreign exchange rates that lower the price of capital below its real value, per capita disproportionate provision of urban services, skewed public investment and tax programmes that provide incentives for both domestic and foreign investors to locate in major areas, and that centre on the metropolis its surrounding areas to the neglect of the

Government policies need to create a more viable balance and by stressing a realistic of rural development and dispersed urbanisation strategies. Specific medium, and long-term policy tools are available to accomplish this goal.

policies might include the generating of rural and related earning opportunities, as well as modifying and the pattern of internal migration. This could be done with help of rural public works programmes for the landless, and semi-skilled;farm price supports, including crop schemes, guarantees, and less over-valued exchange rates to promote agricultural exports, supervised credit programmes for small farmers, including the introduction of locally adapted agricultural inputs and extension services; a freeze on urban real wage rates, particularly
in public sector, either a modification of civil service scales or by







urban prices and taxes accelerate disproportionately to prices taxes; explorations of feasibility of labour exchanges and employment information systems in areas in to match urban employment opportunities with both urban and mral job seekers.

Over the institutional and changes have to be initiated. would include a major reordering of development priorities in which comprehensive development greater importance, alongwith the of a dispersed stsategy that the development of towns, service centres, regional cities.

The objective is to create a hierarchy of small towns and service centres that give rural populations access to a wider range of producer and consumer goods, expanded to counter the current control of local powers, and wider range of investment and employment to agricultural

policies to address over-urbanisation would begin with land reform supported by appropriate national policies. do landless labourers or urban migrants come into being? It is because potential advantages of high-yielding cereal varieties are turned to the exclusive use of the already prosperous. New agricultural technologies are neutral - they are equally effective and large plots- are typically not institutionally neutral- larger, wealthy farmers have greater institutional and political access to credit, extension services, and other inputs necessary to realise the potential of the new

Land reforms, properly initiated, should be a vehicle for redistribution of rural assets and income-earning opportunities, and also a for productivity. Land to work, must be buttressed to supportive policies that extend the availability of credit, improve input supply, expand and services, build new storage and marketing facilities,

process of dispersed new town and of existing service centres has to be backed up by providing incentives for investors to locate their activities in dispersed urban locales by redirecting public expenditure programmes to create new job opportunities.

Public policy has promoted more capital-intensive production technologies than might have been used if relative factor prices are a more accurate reflection of relative factor scarcities. and urban production processes have become more capital-intensive, despite the obvious resource costs and foreign exchange burdens of process. This disparity must be addressed.

World Bank notes that policies to halt over-urbanisation have largely failed, and economists indeed predicted decades ago. Efforts to force to move are unlikely to and shown little real will to change urban bias policies to get at the root of the problem.

The role of public policy is certainly constrained by a of factors. The of direct public policies on over-urbanisation is important but is overshadowed by the consequences of larger policy shifts place across world.



Some economists are sceptical of the ability of public policy to influence over-wbanisation and say that it might end up reducing welfare, especially of the poor and middle classes. Their conviction, however, that most policy-makers remain unaware of the impact of specificeconomic policies on population remains a continuing challenge.

Sceptical economists hold that in contrast to the direct intervention favoured by governments before the the new orthodoxy of - including balanced budgets, removal of subsidies and tariffs, privatisation of enterprises,and the of legal institutions and property rights which enable free and competitive markets to function more efficiently-has greater impact rural-urban migration than the smaller scale policy
aimed to directly affect this problem.

Sceptics are doubtful of intervention on other scores. Governments may not be motivated enough to curb urban when jobs are growing rapidly; when foreign investment is high so that public investment in does not mean an end to industrial capital accumulation; when economic growth is sufficiently rapid to provide with the resources it needs to make key infrastructure investments;and when agricultural
results in the rapid growth of smaller cities towns, which serve as depots commercial centres for an increasingly prosperous countryside.

Where rural education is advanced, so that urban migration does not result in a flood of unskilled labourers, whole issue is of minor importance to the governments. Ironically, successful agricultural growth may itself be a contributor to rural-urban migration.

The idea of establishing secondary cities is but it faces challenge of infrastructure expenses under conditions of severely strained national budgets.

There is also the paradox that repressed agricultural prices might not necessarily lead to sustained urban growth, since low prices diminish foreign-exchange
are essential for city growth. The structural adjustment programme of IMF is likely to reduce rural-urban migration because of devaluation, reductions in deficits,
reduction in money supply growth, wages and declines in urban areas, the tightening of state enterprises and in reduction of other forms of rent sharing and seeking

Nevertheless, has a distinct role to play in curbing the rural-urban
There are obvious psychologicalfactors in the attraction of cities,
to compound that there should not be the push factor that results low levels of investment
in agriculture

Urban infrastructure has tended to receive disproportionate emphasis. When it comes to education the countryside has been relatively ignored. The disparity between wage levels in and urban areas is a problem that has to be addressed by targeted policies. Leaving the problem af over-urbanisation mostly to forces is not likely to result in a return to


22.8 SUMMARY

Migration is a complex phenomenon. This attempts to explain the relationship between migration and development. To begin causes for internal migration are listed out.




The reasons for internal migration be gap in between regions; location of a network in town; availability of marriage; education; or natural disasters. wages higher productivity and efficiency and a labour force an ingredient in enabling a more efficient economy. Migration also
affects the rate of savings and of an and hence its growth.

in India been dominated by short to movements dominated by women. While rural-urban migration has the 1960s in India, rural-rural continues to migration system. The primacy of the agricultural sector in India tied the population to land. A long movement would only the Indian develops industrial base. Females the mral-rural stream (migrating for marriage) rural-urban and urban-urban streams are dominated (migrating for gains) these figures too slowly changing over the years.

A major result of the rural-urban is over-urbanisation. While migration from
to urban improve the conditions, there is increasing pull on the urban resources and amenities by policies need to create a more viable balance between rural and opportunities. Policy makers should be aware of of specific policies on population Leaving the of to forces is not a likely solution.


22.9 EXERCISES


1) List the causes of internal

2) Internal contributes towards a productive economy.

3) Why are the migration in India strongly sex selective?I-Ias there a change in this ratio over years?

4) What are the causes of over-urbanisation and how can this problem be addressed?

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