Migration, Labor Supply, Wages and Agriculture: A Case Study in Rural Odisha

Migration of unskilled labour out of agriculture is a basic characteristic of the process of industrialization, urbanization, modernization and economic development both historically and contemporarily. This paper outlines the recent developments in agricultural labour markets in rural odisha and investigates the issues of agricultural out migration and their implications for agriculture both from theoretical and empirical perspectives. The results indicate that migration does matter. It impacts on labour supply, real wage rate, productivity, output and cropping pattern in agriculture. The overall results contradict the prognosis of the surplus labour model and are consistent with the propositions of the market theory of wages as also with the findings of some of the earlier studies concerning other countries/areas. Keywords: Migration, Agriculture, Minimum Wages Act, Odisha, MNREG