Migration and Human Capital Formation: A Review of the Literatures to Understand the Link in Indian Scenario With Respect to Inland Migration of Unskilled Workers

Abstract

This article takes up the issue, the link between migration and human capital formation with respect to inland movement of unskilled workforces, which is by no means new, but about which there is no consensus. The importance of migration in accumulating human capital, for both urban as well as for rural areas, and thereby to play a role in poverty alleviation policies is considerable. The decision of investing in human capital depends on the gains and costs associated with these investments.Human capital formation is considered to be a central engine of economic development. In countries like India, migrants in cities generally continue to maintain close links with, and sometimes return to, their areas of origin. It is also observed that in many parts of the country the migration of unskilled workforces is permanent in nature. What may be the cases; the socio‐economic background of migrants, the migrants' income and expenditure compared to non‐migrating groups, and whether migrants are able to improve their income over time; these issues are still under the scanner. This article focuses on these above issues by surveying different literatures, initiates investigating the link betweenmigration and human capital formation and also indicates that more research is needed to set a proper link between these two in real sense.