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.
AakvikA., HeckmanJ., & VytlacilE. (2000). Treatment effects for discrete outcomes when responses to treatment vary among observationally identical persons: An application to Norwegian vocational rehabilitation programs (National Bureau of Economic Research, Technical Working Paper, No. 262). https://doi.org/10.3386/t0262
2.
AcharyaS. (2021). The factors affecting rural migration: A holistic study. Indian Research Journal of Extension Education, 21(3), 74–797.
3.
AcostaP. (2006). Labor supply, school attendance, and remittances from international migration: The case of El Salvador (World Bank Policy Research Working Paper, No. 3903). https://doi.org/10.1596/1813-9450-3903
4.
AcostaP. (2020). Intra-household labour allocation, migration, and remittances in rural El Salvador. The Journal of Development Studies, 56(5), 1030–1047. https://doi.org/10.1080/00220388.2019.1626832
5.
AhmedF. (2022). Does migration matter for household welfare in Bangladesh?Migration and Development, 11(3), 697–716. https://doi.org/10.1080/21632324.2020.1812326
6.
AjaeroC. K., NzeadibeC. T., Obisie-NmehielleN., & IkeC. C. (2018). The linkages between international migration, remittances and household welfare in Nigeria. Migration and Development, 7(1), 40–54. https://doi.org/10.1080/21632324.2017.1322171
7.
Amuedo-DorantesC., & PozoS. (2006). Migration, remittances, and male and female employment patterns. American Economic Review, 96(2), 222–226. https://doi.org/10.1257/000282806777211946
8.
AyalewH. A., & MohantyP. C. (2022). Do remittances affect labour participation decisions and hours worked? Evidence from Ethiopia. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2093821
9.
AzeezA., & BegumM. (2009). Gulf migration, remittances and economic impact. Journal of Social Sciences, 20(1), 55–60. https://doi.org/10.1080/09718923.2009.11892721
10.
AziziS. S. (2018). The impacts of workers’ remittances on human capital and labor supply in developing countries. Economic Modelling, 75, 377–396. https://doi.org/10.1016/j.econmod.2018.07.011
11.
AziziS. S. (2021). The impacts of workers’ remittances on poverty and inequality in developing countries. Empirical Economics, 60(2), 969–991. https://doi.org/10.1007/S00181-019-01764-8/TABLES/8
12.
BangJ. T., MitraA., & WunnavaP. V. (2016). Do remittances improve income inequality? An instrumental variable quantile analysis of the Kenyan case. Economic Modelling, 58, 394–402. https://doi.org/10.1016/J.ECONMOD.2016.04.004
13.
BediJ. K., JiaS., & WilliamsonC. R. (2023). Brain gains: A cross-country study on the relationship between remittances and entrepreneurship. International Journal of Entrepreneurship and Small Business, 49(1), 32–62. https://doi.org/10.1504/IJESB.2023.131616
14.
BerulavaG. (2019). Migration and labor supply in Georgia: An empirical study. Eurasian Economic Review, 9(3), 395–419. https://doi.org/10.1007/S40822-018-0106-4
15.
BhagatR. B., & AliI. (2021). Migration and impact of remittances on health. In Muslims in Telangana: A discourse on equity, development, and security (pp. 197–210). https://doi.org/10.1007/978-981-33-6530-8_10
16.
BinzelC., & AssaadR. (2011). Egyptian men working abroad: Labour supply responses by the women left behind. Labour Economics, 18(Suppl. 1), S98–S114. https://doi.org/10.1016/j.labeco.2011.03.002
17.
ChandrasekharS., SahooS., & SwaminathanH. (2021). Seasonal migration and feminization of farm management: Evidence from India. Feminist Economics, 28(1), 86–113. https://doi.org/10.1080/13545701.2021.1976808
18.
ChandrasekharS., & SharmaA. (2014). Internal migration for education and employment among youth in India. Indira Gandhi Institute of Development Research, Mumbai. http://oii.igidr.ac.in:8080/xmlui/handle/2275/304
19.
ChangH., DongX., & MacPhailF. (2011). Labor migration and time use patterns of the left-behind children and elderly in rural China. World Development, 39(12), 2199–2210. https://doi.org/10.1016/j.worlddev.2011.05.021
20.
CoulibalyI., & DembéléM. (2024). Impacts of remittances from internal and international migrants on poverty and inequality in Mali. International Economics, 177, 100482. https://doi.org/10.1016/J.INTECO.2024.100482
21.
DaryS. K., & UstarzY. (2020). Internal remittances and employment choices in rural Ghana. African Journal of Economic and Management Studies, 11(3), 505–524. https://doi.org/10.1108/AJEMS-03-2019-0126
22.
DémurgerS., & LiS. (2013). Migration, remittances, and rural employment patterns: Evidence from China. Research in Labor Economics, 37, 31–63. https://doi.org/10.1108/S0147-9121(2013)0000037006
23.
DeyS. (2014). Impact of remittances on poverty at origin: A study on rural households in India using covariate balancing propensity score matching. Migration and Development, 4(2), 185–199. https://doi.org/10.1080/21632324.2014.979022
24.
DeyS. (2022). Impact of remittances on labour supply and occupational choice in rural India. International Journal of Rural Management, 18(1), 78–102. https://doi.org/10.1177/0973005221994371
25.
DumanE. (2022). The impacts of international remittances on child labor and household welfare. SSRN. https://doi.org/10.2139/SSRN.4063010
26.
DuttaU. P., & SaikiaB. (2022). Remittances and economic growth: Empirical analysis from a panel of selected Asian nations. Millennial Asia, 15(1), 5–23. https://doi.org/10.1177/09763996221086745
27.
FilmerD., & PritchettL. H. (2001). Estimating wealth effects without expenditure data—or tears: An application to educational enrollments in states of India. Demography, 38(1), 115–132. https://doi.org/10.2307/3088292
FunkhouserE. (1992). Mass emigration, remittances, and economic adjustment: The case of El Salvador in the 1980s. In Immigration and the work force: Economic consequences for the United States and source areas (pp. 135–176). University of Chicago Press. https://www.degruyter.com/document/doi/10.7208/9780226066707/pdf#page=145
30.
GawdeN. C., SivakamiM., & BabuB. V. (2016). Utilization of maternal health services among internal migrants in Mumbai, India. Journal of Biosocial Science, 48(6), 767–796. https://doi.org/10.1017/S0021932016000195
31.
HabibH. (2022). Remittances and labor supply: Evidence from Tunisia. Journal of the Knowledge Economy, 1–30. https://doi.org/10.1007/S13132-022-00952-9
32.
HellerA., & KaushikA. (2020). The consequences of husband’s international migration on family left-behind in Tamil Nadu, India. Journal of International Migration and Integration, 21(4), 1149–1163. https://doi.org/10.1007/s12134-019-00705-9
33.
IvlevsA. (2016). Remittances and informal work. International Journal of Manpower, 37(7), 1172–1190. https://doi.org/10.1108/IJM-08-2015-0117
34.
JadotteE., & RamosX. (2016). The effect of remittances on labour supply in the Republic of Haiti. Journal of Development Studies, 52(12), 1810–1825. https://doi.org/10.1080/00220388.2016.1156089
35.
JammehA. (2023). Education, migration and development: Critical perspectives in a moving world. Compare: A Journal of Comparative and International Education, 1–2. https://doi.org/10.1080/03057925.2023.2181593
36.
JayanthakumaranK., VermaR., WanG., & WilsonE. (2019). Correction to: Internal migration, urbanization, and poverty in Asia: Dynamics and interrelationships. In Internal migration, urbanization and poverty in Asia: Dynamics and interrelationships (pp. C1–C1). https://doi.org/10.1007/978-981-13-1537-4_13
37.
JosephG., & PlazaS. (2010). Impact of remittances on child labor in Ghana. Policy Research Working Paper Series.
38.
KakhkharovJ. (2019). Migrant remittances as a source of financing for entrepreneurship. International Migration, 57(5), 37–55. https://doi.org/10.1111/IMIG.12531
39.
KarymshakovK., AbdievaR., SulaimanovaB., & SultakeevK. (2016). Remittances impact on youth labour supply: Evidence from Kyrgyzstan. PEP Working Paper Series, 2016-05. https://doi.org/10.2139/ssrn.3167324
40.
KarymshakovK., & SulaimanovaB. (2017). Migration impact on left-behind women’s labour participation and time-use (WIDER Working Paper, 2017/119). https://doi.org/10.35188/UNU-WIDER/2017/343-
41.
KeshriK., & BhagatR. B. (2010). Temporary and seasonal migration in India. Genus, 66(3), 25–45. https://doi.org/10.4402/genus-207
42.
KeshriK., & BhagatR. B. (2013). Socioeconomic determinants of temporary labour migration in India: A regional analysis. Asian Population Studies, 9(2), 175–195. https://doi.org/10.1080/17441730.2013.797294
43.
KhanM. I., & BaruahA. (2021). Internal migration, remittances and labour force participation in rural India: A gender perspective. International Labour Review, 160(3), 453–476. https://doi.org/10.1111/ilr.12200
44.
KhanM. I., & ValatheeswaranC. (2016). International migration, remittances and labour force participation of left-behind family members: A study of Kerala. Margin: The Journal of Applied Economic Research, 10(1), 86–118. https://doi.org/10.1177/0973801015612669
45.
LederS. (2022). Beyond the ‘feminization of agriculture’: Rural out-migration, shifting gender relations and emerging spaces in natural resource management. Journal of Rural Studies, 91, 157–169. https://doi.org/10.1016/J.JRURSTUD.2022.02.009
46.
LiuY., & XuW. (2017). Destination choices of permanent and temporary migrants in China, 1985–2005. Population, Space and Place, 23(1), e1963. https://doi.org/10.1002/psp.1963
47.
LokshinM., & GlinskayaE. (2009). The effect of male migration on employment patterns of women in Nepal. World Bank Economic Review, 23(3), 481–507. https://doi.org/10.1093/wber/lhp011
48.
LokshinM., & SajaiaZ. (2004). Maximum likelihood estimation of endogenous switching regression models. The Stata Journal, 4(3), 282–289. https://doi.org/10.1177/1536867x0400400306
49.
LokshinM., & SajaiaZ. (2011). Impact of interventions on discrete outcomes: Maximum likelihood estimation of the binary choice models with binary endogenous regressors. The Stata Journal, 11(3), 368–385. https://doi.org/10.1177/1536867x1101100303
50.
LusomeR., & BhagatR. (2006, June). Trends and patterns of internal migration in India, 1971–2001. In Annual Conference of Indian Association for the Study of Population (IASP) (Vol. 7, p. 9). https://www.researchgate.net/publication/265278165
51.
MahapatroS., BaileyA., JamesK. S., & HutterI. (2017). Remittances and household expenditure patterns in India and selected states. Migration and Development, 6(1), 83–101. https://doi.org/10.1080/21632324.2015.1044316
52.
MahapatroS. R. (2017). Why do they remit? Examining factors influencing migrant remittances in India. Journal of Development Policy and Practice, 2(2), 225–235. https://doi.org/10.1177/2455133317704745
53.
MahapatroS. R. (2012, June). The changing pattern of internal migration in India. In European Population Conference, Stockholm, Sweden. https://epc2012.eaps.nl/papers/121017
MendolaM., & CarlettoC. (2012). Migration and gender differences in the home labour market: Evidence from Albania. Labour Economics, 19(6), 870–880. https://doi.org/10.1016/j.labeco.2012.08.009
56.
MishraK., KondratjevaO., & ShivelyG. E. (2022). Do remittances reshape household expenditures? Evidence from Nepal. World Development, 157, 105926. https://doi.org/10.1016/j.worlddev.2022.105926
57.
MohantyS. K., MohapatraS. R., KastorA., SinghA. K., & MahapatraB. (2016). Does employment-related migration reduce poverty in India?Journal of International Migration and Integration, 17(3), 761–784. https://doi.org/10.1007/s12134-015-0436-y
58.
MuellerV., & ShariffA. (2011). Preliminary evidence on internal migration, remittances, and teen schooling in India. Contemporary Economic Policy, 29(2), 207–217. https://doi.org/10.1111/j.1465-7287.2010.00211.x
59.
MughalM., & MakhloufF. (2013). Labour effects of foreign and domestic remittances – Evidence from Pakistan. International Review of Applied Economics, 27(6), 798–821. https://doi.org/10.1080/02692171.2013.804495
60.
MurakamiE., YamadaE., & SiosonE. P. (2021). The impact of migration and remittances on labor supply in Tajikistan. Journal of Asian Economics, 73, 101268. https://doi.org/10.1016/j.asieco.2020.101268
61.
MurardE. (2016). Consumption and leisure: The welfare impact of migration on family left behind. IZA Discussion Paper, 10305. https://www.iza.org/en/publications/dp/10305/consumption-and-leisure-the-welfare-impact-of-migration-on-family-left-behind
62.
NanyitiA., & SseruyangeJ. (2021). Do remittances impact on entrepreneurial activities? Evidence from a panel data analysis. The Journal of International Trade & Economic Development, 31(4), 553–565. https://doi.org/10.1080/09638199.2021.1995466
63.
NanziriL. E., & MwaleM. L. (2023). Remittances, crowd-in effect, and household welfare. Scientific African, 19, e01521. https://doi.org/10.1016/J.SCIAF.2022.E01521
64.
NdiayeA. S., & AraarA. (2017, October5–6). Migration and remittances in Senegal: Effects on labor supply and human capital of households members left behind (Conference presentation). UNU-WIDER Development Conference on Migration and Mobility, Accra, Ghana. https://www.wider.unu.edu/sites/default/files/NDIAYE%2C%20Ameth%20Saloum_paper.pdf
65.
NoushadA. P., ParidaJ. K., & RamanR. K. (2020). Low-skilled emigration, remittances and economic development in India. Migration and Development, 11(3), 389–419. https://doi.org/10.1080/21632324.2020.1787099
66.
OtameL. (2023). International remittances flow to Nigeria: A household perspective (Doctoral dissertation, Bournemouth University).
67.
ParidaJ. K., & MadheswaranS. (2011). Determinants of migration and remittance in India: Empirical evidence. Indian Journal of Labour Economics, 54(3), 561–578. https://www.researchgate.net/publication/283298631_Determinants_of_migration_and_remittance_in_India_Empirical_evidence
68.
PelletierA. (2020). Household remittances, inequality and poverty: Evidence from the state of Kerala. In RajanS. I. & PercotM. (Eds.), Dynamics of Indian migration (pp. 378–417). Routledge India. https://doi.org/10.4324/9780367818043-18
69.
PetreskiM., Mojsoska-BlazevskiN., RistovskaM., & SmokvarskiE. (2014). Youth self-employment in households receiving remittances in Macedonia (PEP Working Paper, No. 2014-08). https://doi.org/10.2139/SSRN.2526737
70.
PhaderaL. (2019). Impact of international migration on labor supply in Nepal (World Bank Policy Research Working Paper, No. 9014). https://doi.org/10.1596/1813-9450-9014
71.
RamanL., & BhagatR. B. (2021). Internal migration in India 1971–2011. March, 18–20.
72.
SanyalT., & MaityK. (2018). On labour migration in India: Trends, causes and impacts. Economic Affairs, 63(1), 57–69. https://doi.org/10.30954/0424-2513.2018.00150.8
73.
ShairW., & AnwarM. (2023). Effect of internal and external remittances on expenditure inequality in Pakistan. Cogent Economics & Finance, 11(1). https://doi.org/10.1080/23322039.2023.2178121
74.
SrivastavaR. (2011). Internal migration in India: An overview of its features, trends and policy challenges. In National Workshop on Internal Migration and Human Development in India: Workshop Compendium (Vol. 2: Workshop Papers, pp. 1–47). UNESCO, New Delhi. https://unesdoc.unesco.org/ark:/48223/pf0000218787
75.
SucharitaS. (2020). Socio-economic determinants of temporary labour migration in western Jharkhand, India. Millennial Asia, 11(2), 226–251. https://doi.org/10.1177/0976399620925451
76.
Suman. (2018). Gendered migrations and literary narratives: Writing communities in South Asian diaspora. Millennial Asia, 9(1), 93–108. https://doi.org/10.1177/0976399617753755
77.
TaylorJ. E., & Lopez-FeldmanA. (2020). Does migration make rural households more productive? Evidence from Mexico. In CarlettoC., DavisB., & WintersP. (Eds.), Migration, transfers and economic decision making among agricultural households (pp. 68–90). Taylor and Francis. https://doi.org/10.4324/9781003061229-4
78.
TaylorJ. E., RozelleS., & de BrauwA. (2003). Migration and incomes in source communities: A new economics of migration perspective from China. Economic Development and Cultural Change, 52(1), 75–101. https://doi.org/10.1086/380135
79.
TumbeC. (2012). Migration persistence across twentieth century India. Migration and Development, 1(1), 87–112. https://doi.org/10.1080/21632324.2012.716225
80.
UllahA. K. M. A., FerdousJ., & ChattorajD. (2022). Social, political and cultural remittances: Implications for the origin and destination countries. Millennial Asia, 15(1), 72–88. https://doi.org/10.1177/09763996221088639
81.
VadeanF., RandazzoT., & PirachaM. (2019). Remittances, labour supply and activity of household members left-behind. Journal of Development Studies, 55(2), 278–293. https://doi.org/10.1080/00220388.2017.1404031
82.
VargheseV. J. (2023). Labour migration to the Gulf and India’s emigration governance: Expanding bounds of protection. Millennial Asia. Advance online publication. https://doi.org/10.1177/09763996231177584
83.
XingY., SemyonovM., & HaberfeldY. (2010). Labor migration, remittances, and economic well-being: A study of households in Rajasthan, India. In EpsteinG. S. & GangI. N. (Eds.), Migration and culture (Frontiers of Economics and Globalization, Vol. 8) (pp. 497–516). Emerald Group Publishing Limited. https://doi.org/10.1108/S1574-8715(2010)0000008027
84.
XuH. (2017). The time use pattern and labour supply of the left behind spouse and children in rural China. China Economic Review, 46, S77–S101. https://doi.org/10.1016/j.chieco.2016.10.010
