Question

Internal migration contribution towards a productive economy

Answer 1

In particular, this section looks at productivity gaps between sectors and the links between migration and structural transformation; the selectivity of migration, the commensurate patterns of remittances and hence inclusiveness in any benefits from internal migration; and external costs potentially imposed through ...

Answer 2

Internal migration contribution:

• One of the main reasons why India's rural sector is marred by lack of opportunity, underemployment, and disguised unemployment (mainly due to land fragmentation).
• So when the underemployed and the unemployed move to the city to find jobs, they are now adding value to the country's labor productivity because they are now looking for jobs that pay enough to support their family.
• Therefore, generally speaking, no company employs an employee below its marginal cost, so we can assume that rural-urban migration contributes to the country's improved productivity.
• In the same period, as internal migration takes place, the population (where emigration occurred) shrinks, bringing more bargaining power to the jobs left behind and raising their odds of being compensated more.

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