Labour Migration to the Construction Sector in India and its Impact on Rural Poverty

Abstract

The present article studies the impact of migration to the construction sector on rural poverty in India based on field survey. The survey has been carried out in two phases, the first phase involving the survey of construction workers in National Capital Region and the second phase comparing the well-being of migrant households with non migrant households in selected source villages. The study finds that at destination, workers have poor living and working conditions, lack citizenship rights, entitlements and voice. However, at the cost of hardship, low consumption levels, and possibly a smaller working life span, they manage to save a good portion of their income which they remit or take back home. At origin, migrant households report higher expenditure on consumption, residential housing, and children’s education, as well as some other assets. These differences are a result of higher employment and wage incomes among migrants. However, we were not able to control for differences in initial conditions, and life cycle and other issues, which influence both participation in migration, as well as long-term impacts.