Do long-term migrants earn higher wages than short-term migrants in the informal sector? Evidence from Jammu & Kashmir, India

Abstract

Many theories hypothesize that long-term migration is more welfare-enhancing than short-term migration as the benefits from skill acquisition, experience, and labour networks outplay the permanent disutility/cost of migration. This article aims to evaluate the influence of long-term migration on wages and contrast it with the effect of short-term migration on wages. We applied the Endogenous switching regression (ESR) model to measure the treatment effect of long-term migration on wages. The results suggest that religion, marital status, employment sector, experience, and region are significant determinants of long-term migration. We also conclude that short-term migrants are better than long-term migrants in Jammu & Kashmir because the treatment effect negatively affects migrants’ daily wages. The paper also directs potential policy implications.