Internal Migration and Labour Market Behaviour in Rural India: Do the Left-out Members Prefer Work to Leisure?

This study investigates how migration influences the labour market behaviour of left-out household members in rural Jharkhand, India, relying on primary data gathered from 575 households selected through multi-stage stratified sampling using an endogenous switching probit model (ESPM). It finds that, contrary to international migration, internal migration induces a stronger substitution effect (SE) than the income effect (IE), resulting in higher labour market participation among heads of migrant households. The study underscores key implications, emphasizing the importance of crop-intensification and diversification, along with investments in non-farm activities such as agro-processing and livestock rearing. These measures can optimize the benefits of remittance inflows and increased labour supply, fostering rural development and enhancing economic resilience.