ABSTRACT
In developing countries, migration towards urban centres is perceived as an income-generating activity and continues to be an economically rational choice for (rural) individuals as it helps them (or households) to diversify income risk and obtain liquidity in the face of factor, credit and insurance market failures. Following the neoclassical arguments, decision to migrate can be comprehended by examining the (discounted) net expected gains from migration. This approach compares the benefits of residing at the place of origin with the expected benefits of migrating to a particular destination. It is plausible that despite low expected benefits at the destination, an individual could still be better off by migrating since his expected benefits at origin are even lower. However, in the absence of adequate employment opportunities, excess labour supply (in the form of migration) to urban areas would contribute to expansion of informal sector and can intensify socioeconomic vulnerabilities. In fact, in recent times, the subject of intensifying urban poverty among migrants has received increasing attention. It is against this backdrop that we attempt to make a careful assessment of poverty outcomes among migrants to urban India with respect to their socioeconomic background.
