Labour-sending regions can benefit from migration in several ways. First, when people migrate from areas with too much labour, it can increase the average productivity of those who remain, as fewer workers lead to more efficient use of labour-saving methods and higher work participation among family members.
Migration also reduces the number of people that need to be supported, improving the living standards of the remaining population. As fewer people need food and resources, the per capita consumption increases.
Economically, these regions benefit from the money sent back by migrants. In India, rural migrants who move to cities often send part of their earnings to their families, providing financial support to their households. This remittance inflow boosts the local economy, as seen in states like Kerala, where foreign remittances from the Middle East have led to better living conditions, and investments in housing, education, agriculture, and even businesses.
While migration helps improve living standards, it can also create labour shortages and drive up wages in the labour-sending regions, especially when large numbers of people leave. Nonetheless, the economic benefits of remittances and increased productivity generally outweigh these challenges.
Copyright @ Sociology IGNOU.