In Nepal, which consists of ecologically distinct regions, the concentration of the adoption of modern rice varieties in the favourable rice growing areas of the country has raised fears that regional income disparities have widened. This study shows that greater demand for hired labour due to the adoption of modern rice varieties has induced permanent and seasonal migration from unfavourable to favourable areas. This appears to have largely equalised average wage rates across different production environments. Thus, as far as labour income is concerned, benefits from the modern varieties have been widely shared.