Migration, Wages and Agriculture: Empirical Evidence and Policy Implications

Abstract

How does labour out migration impact on labour supply, wage rate, size and composition of costs, productivity, production, cropping pattern and land use in agriculture? Putting in context the theoretical and empirical perspectives and using household survey data, this paper attempts to explain some of these issues. The results are more in agreement with market theory of wages than with the labour surplus and dual economy models. They indicate that migration has a strong bearing on agriculture and the labour-wage problems are likely to be more serious in future. Diversification favouring more land-intensive agricultural production, promoting location and small farm size specific technological innovations, a community approach to farm labour and a pragmatic redesigning and implementation of MNREGA and food security programmes can be helpful.