Impact of Migration on Poverty: The Case of Construction Workers of India, Nepal and Bangladesh

Aims & Objectives: This project was a three country study on India, Nepal, and Bangladesh. The Indian leg of the project was based on a survey of migrant construction workers employed in the National Capital Region (NCR) sites.

Methodology: It surveyed 150 construction workers at three types of construction sites selected purposively after initial mapping exercises. Also, two source villages were identified from Bihar and West Bengal and a sample of 80 households was taken that included both migrant and non-migrant labour households.

Findings: The findings of the study revealed that:

• Most workers are seasonal or circular migrants from areas with inadequate livelihood opportunities. The workplace is segmented along migration streams, functions and gender;
• Contractors play a crucial role in recruiting workers and determining their wages and working conditions. Long distance migrants recruited at origin have little bargaining capacity;
• Generally, workers and their families have poor living and working conditions, lack citizenship rights, entitlements and voice;
• Their wages are lower than the legal minimum. Most workers, and all female workers, remain stuck in low paid and low skilled jobs;
• Migrant workers perceive that they are better off in terms of quantum of employment and remuneration than at origin, but perceive their housing and living conditions to be poorer;
• At origin, migrants are able to secure employment for longer duration and receive higher wages than non-migrants. Their remittances are used to boost consumption, the condition of residential housing, expenditure on children’s education and selective investment in other assets;
• Higher wage incomes among migrants compared to similarly placed non-migrants indicates that migrant labourers have more income to improve the living conditions of family members and
• Migrants perceive faster change in their economic condition compared to their non-migrant counterparts.

Recommendations: The policy recommendations were:

• Simplify and reform labour laws (especially laws on labour migration) with better enforcement;
• Make worker’s dues and working conditions a joint liability of contractors and outsourcers;
• Implement amendments to the Building and Construction Workers’ Welfare Act;
• Frame policies for better regional and urban development and
• Make provision for enhancing skill base and skill acquisition.