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Migration remittances and employment short-term trends and longterm implications

Author

Listed:
  • K.C. Zachariah

    (Centre for Development Studies)

  • S. Irudaya Rajan

    (Centre for Development Studies)

Abstract
This Working Paper gives the results of the 2007 round of the Migration Monitoring Studies (MMS) being conducted periodically by the Centre for Development Studies. It covers three areas: migration, remittances and employment. Their short-term trends and long-term development implications are the main concern of the paper. Contrary to expectation, the international migration situation in Kerala has remained absolutely stationary during 2003-07. The number of emigrants, return emigrants, non-resident Keralites and the proportion of Kerala households with a non-resident Keralite each in 2007 were the same as they had been in 2003. Mobility in Kerala has become, so to say, immobile. The era of large-scale emigration from the state seems to be largely over. However, internal migration was not very static. It has started declining. Today more persons are coming to the state than are going out. The first half of the 21st century could be like the first half of the 20th century when Kerala had been a net in-migrating state. A second unexpected result was in the area of employment and unemployment. Here again, contrary to common wisdom unemployment has declined by a whooping 40 percent during 2003-07. Simultaneously, employment has increased by over 3 lakh persons, with a 100 percent increase in the private sector and 20 percent increase in self-employment. Remittances to the state have toed the expected line with a consistent increase of 33 percent during 2003-07. Remittances formed about 20 percent of the state's NSDP and 30 percent more than the state's annual revenue receipts. What do these short-term trends in migration, remittances and employment mean for the development process in the state? Migration used to be a partial solution to the unemployment problem in the state. It was also a partial solution to the subsistence problems of many a household in Kerala. Migration is still serving these purposes eminently. In addition, it is now emerging as a major factor in two other areas. Firstly, migration, especially internal migration, seems to be bridging also the demand-supply gap caused by inadequacy of postmetric educational facilities in the state. Second, remittance-based investments seem to be taking over from the remittances-based consumption as the state's new growth driver.

Suggested Citation

  • K.C. Zachariah & S. Irudaya Rajan, 2007. "Migration remittances and employment short-term trends and longterm implications," Centre for Development Studies, Trivendrum Working Papers 395, Centre for Development Studies, Trivendrum, India.
    • Handle: RePEc:ind:cdswpp:395
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    References listed on IDEAS

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    1. K.C. Zachariah & P.R. Gopinathan Nair & S. Irudaya Rajan, 2001. "Return emigrants in Kerala: Rehabilitation problems and development potential," Centre for Development Studies, Trivendrum Working Papers 319, Centre for Development Studies, Trivendrum, India.
    2. K.C. Zachariah & B.A. Prakash & S. Irudaya Rajan, 2002. "Gulf migration study: Employment, wages and working conditions of Kerala emigrants in the United Arab Emirates," Centre for Development Studies, Trivendrum Working Papers 326, Centre for Development Studies, Trivendrum, India.
    3. KC.Zachariah & S.Irudaya Rajan, 2007. "Economic and social dynamics of migration in Kerala, 1999-2004: Analysis of panel data," Centre for Development Studies, Trivendrum Working Papers 384, Centre for Development Studies, Trivendrum, India.
    4. K.C. Zachariah & S. Irudaya Rajan, 2005. "Unemployment in Kerala at the turn of the century: Insights from CDS Gulf migration studies," Centre for Development Studies, Trivendrum Working Papers 374, Centre for Development Studies, Trivendrum, India.
    5. Zachariah KC, 2007. "Economic and Social Dynamics of Migration in Kerala, 1999-2004 Analysis of Panel Data," Working Papers id:1087, eSocialSciences.
    6. K.C. Zachariah & S. Irudaya Rajan, 2004. "Gulf revisited: Economic consequences of emigration from Kerala, emigration and unemployment," Centre for Development Studies, Trivendrum Working Papers 363, Centre for Development Studies, Trivendrum, India.
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    Cited by:

    1. S.Irudaya Rajan & Bernard D Sami & S.Samuel Asir Raj, 2017. "Tamil Nadu Migration Survey 2015," Working Papers id:12075, eSocialSciences.
    2. Fatma MABROUK & Jacob ODUOR & Abebe SHIMELES, 2015. "Remittances and Youth Labor Market Participation in Africa," Cahiers du GREThA (2007-2019) 2015-32, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Justin Sunny & Jajati K. Parida & Mohammed Azurudeen, 2020. "Remittances, Investment and New Emigration Trends in Kerala," Review of Development and Change, , vol. 25(1), pages 5-29, June.
    4. K.K. George & Remya S, 2018. "Impact of Rupee Appreciation on Non-Resident Malayalees," Working Papers id:12550, eSocialSciences.
    5. K.N. Nair & Vineetha Menon, 2007. "Distress debt and suicides among agrarian households: Findings from three village studies in Kerala," Centre for Development Studies, Trivendrum Working Papers 397, Centre for Development Studies, Trivendrum, India.
    6. K.N. Nair & Vineetha Menon & Vineetha Menon, 2007. "Agrarian distress and livelihood strategies: A Study in Pulpalli panchayat, Wayanad District, Kerala," Centre for Development Studies, Trivendrum Working Papers 396, Centre for Development Studies, Trivendrum, India.
    7. Jajati K. Parida & Merry Elizabeth John & Justin Sunny, 2020. "Construction labour migrants and wage inequality in Kerala," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 414-442, December.
    8. Saikia, Dilip, 2010. "Migrant Workers in Kerala: A Study on their Socio-Economic Conditions," MPRA Paper 68462, University Library of Munich, Germany, revised Jul 2012.
    9. Bhupesh Gopal Chintamani & Lalitagauri Kulkarni, 2023. "Determinants and Effects of International Remittances: Evidence from Ratnagiri District of Rural Maharashtra," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(2), pages 617-637, June.
    10. K.N. Nair, 2008. "Distress Debt and Suicides among Agrarian Households: Findings from Three Villages in Kerala," Working Papers id:1586, eSocialSciences.

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    More about this item

    Keywords

    Migration; Remittances; Employment;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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