The informal sector and rural-to-urban migration: some Indian evidence

Type Working Paper - Economic and Political Weekly
Title The informal sector and rural-to-urban migration: some Indian evidence
Author(s)
Volume 33
Issue 21
Publication (Day/Month/Year) 1998
Page numbers 255-262
URL http://www.popline.org/node/278966
Abstract
This study explored the role of the informal sector in rural-urban migration during the 1970s in India. The analysis includes a description of the occupational shifts during the 1970s, urbanization patterns, and the role of informal sector earnings and employment opportunities in increasing rural-urban migration. The share of agriculture in the work force increased during the 1960s and declined in the 1970s. Agriculture declined to 35.5% of the national domestic product in 1981. Agricultural workers declined to 66.7%. Informal nonagricultural sectors, especially informal manufacturing, absorbed most of the loss in agricultural workers. In 1981, the dominant movement was rural-rural migration, which was 57.1% of the total. 19.5% of migration was rural-urban migration; 15.5% was urban-urban migration. The rural-rural and rural-urban flows were more prominent during 1971-81 than 1961-71. Among interprovincial movements, urban-urban movements were the most important flow. In both periods, rural-urban migration flows were more important in total migration. Migration increased in importance as part of urban growth between decades. Two important keys to rural-urban migration were employment and family. The formal sector increased very slowly. The work participation rate of main and marginal workers increased between decades. It is unlikely that rural poverty increased during the 1970s. Per worker annual earnings among informal workers were much higher than among agricultural workers. Informal labor was more than an absorber of labor. The dynamic, productive sector attracted labor.

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