Low-Skilled Indians See 500% Hike in Income After Migration: WDR Study

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Cyril Zachariah
Updated on Apr 26, 2023 04:27 PM IST

A study by the World Development Report reveals that Indians in low skills jobs also see a significant jump in their incomes compared to internal migration. It also sheds light on the parities seen in terms of income gains in different countries such as the USA and UAE countries as well as the migration costs Indians incur when migrating to different countries.

Low-Skilled Indians See 500% Hike in Income After Migration: WDR Study

A study conducted by the World Development Report (WDR) has revealed a significant difference between the income of Indians working abroad compared to the income gained by Indians working through internal migration. In other words, as per the report, low-skilled Indians saw a 500% gain in their income by migrating to the USA.

The report highlighted a 120% surge in the income of Indians working abroad, compared to the 40% hike in the income gained through internal migration. The World Development Report study highlighted the US as a destination where Indians earned more, compared to those who find employment in the Gulf Cooperating Council (GCC) such as Oman, Kuwait, Qatar and others.

Also Read: GRE Data: More Indian Students Choose Physical Sciences Over Engineering in USA

WDR highlighted several factors affecting the jump in income apart from skills, such as age, language ability and destination. While it is understood that high-skilled jobs like doctors and engineers would see a significant jump in their income, it was also reported that low-skilled workers also witnessed a multi-fold hike in their income.

As per the report, most individuals would often witness a hike in their income through migration, especially if their skills and attributes are highly demanded by the needs of the society they travel to. It added that the gains are often larger than what could be achievable, including through internal migration to countries with better income possibilities. The report claims that achieving the gains in the current economic growth rates would take decades for the average low-skilled workers in their country of origin when compared to migrating to a high-income country.

Also Read: ONS Report: Indians Form the Largest Cohort of International Students in England and Wales

There are a total of 184 million migrants situated around the world with nearly 37 million of them being classified as refugees, as per the report. The report categorised the migrants into different categories, among which the top migrant corridors include India-GCC, India-Bangladesh, India-US, distressed migrants and refugees, economic migrants with skills that match the demand and refugees with skills in demand.

The World Development Report study also focused on the migration costs that individuals incur when travelling between countries for employment. The report stated that moving to Qatar would often come at a cost equivalent to a two-month salary of an Indian, which is even higher if they choose to migrate to Kuwait. For a Bangladeshi, the costs would amount approximately to an equivalent of a 9-month salary. The study also revealed the increase in the amount of money migrants send back home to their families as remittances. For instance, it was reported that the Indians in UAE often send back 70% of their income to their families.

Source: Hindustan Times

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