Labour Market Outcomes and Skill Endowment of Nepali Migrant Workers in India: Case of Uttar Pradesh and Delhi

Abstract

Migration to India of Nepali workers is a historical phenomenon. Due to 'open border' and multidimensional inter-linkages, migration for work persists to this day. The importance and challenges of the labour market for Nepali migrants in India are yet to be recognized and studied. This study examines the existing skill endowments of Nepali migrant workers and strategies to enhance their labour market outcomes in India. The Indian labour market is fragile. Recruitment neither follows a strict rule or process nor are any specific skills required. From this standpoint, the situation of Nepali migrant workers is not much different than India’s internal migrants. However, Nepali migrants are neither well documented nor properly recruited in the labour markets of India. Because of their low level of education and lack of skill, they are deprived of good job opportunities and their income is also low. Most of the Nepali migrants are not netted in by the social security scheme of India. This study suggests that education; training for skills and social security benefits can go a long way in improving the labour market outcomes of the Nepali migrants.