Wages and Remittance Behaviour among Migrant and Local Labour in Kerala

Abstract

This paper examines the quality of work life, wage structure, living expenditure, savings and remittance behaviour of migrant and local labour in Kerala. The paper is derived from a primary survey conducted between April 2015 and June 2016 across three zones of Kerala—South, Central and North—covering Trivandrum, Kochi and Kozhikode. The sample comprised 450 migrant labourers, 225 local labourers and 90 employers from construction, hotel and restaurant, and domestic-work sectors. Structured interview schedules were used and the study employed descriptive statistics, chi-square tests, t-tests, logistic regression and other inferential procedures. The findings show a clear economic differentiation in the allocation of earnings. Average monthly wages were Rs.12,650.78 for migrant labourers and Rs.15,132.44 for local labourers. Migrant workers allocated 64.10% of wages to remittances, 25.02% to living expenses and 10.88% to savings, whereas local labourers allocated 62.68% to living expenses and 37.32% to savings. Significant differences were reported in wages, savings, remittances and living expenses. The study also identifies differences in accommodation, food provision, employment nature, training, service benefits and other work-life indicators. The paper argues that migrant labour should be understood not merely as a source of low-cost labour but as a workforce whose living and employment conditions are closely connected with industrial productivity and social welfare.