A Comparison of the Welfare Gains to the Households of South Indians Migrating for Jobs within India versus Internationally

Abstract

This study compares the welfare gains to households in Kerala, India from two types of labor migration: moving overseas versus moving within India for employment. It draws on panel data from waves of a representative household survey conducted in 1998 and 2003. Migrant households as a whole experienced higher asset gains than non-migrant families over this five-year period. Yet contrary to theoretical expectations, welfare gains were similar for households with an overseas migrant and those with a domestic migrant. Although less educated individuals tend to venture overseas, a wage premium over non-migrants enables them to earn as much in low-skill jobs abroad as more educated workers relocating within India can.