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Economic Survey 2016-17 for IAS Prelims: Labour Migration in India

Feb 22, 2017 18:05 IST

    Economy Survey 2016-17

    Economic Survey IAS questions provided by us here can be very fruitful for the upcoming IAS Prelims Exam 2017. It is evident from the IAS Prelims Exam 2016; many questions have been asked, are somehow similar to questions created by us from the last year’s Economic Survey 2015-16. This year also we are continuously providing questions created from the Economic Survey 2016-17.

    Economic Survey 2016-17 for IAS Prelims- One Economic India II

    1. Consider the following statements regarding the pattern of migration of people within India:
    I. The pattern of flows of people found in this study are broadly consistent with popular conception - less affluent states see more people migrating out while the most affluent states are the largest recipients of migrants.
    II. The cost of moving for people is about twice as much as it is for goods – another confirmation of priors.

    Which of the following statement(s) is/are correct?
    a. Only I
    b. Only II
    c. Both I and II
    d. Neither I nor II

    Answer: c

    Explanation:

    Economic Survey says that higher labour migration bodes well for a country’s economic future, how does India compare to its neighbor? The traditional view, based on a straightforward reading of the 2001 Census, is that the stock of migrants in India is low (around 33 million), and not increasing very rapidly. This chapter instead takes a different view and arrives at a much larger estimate of labour migration in India by analyzing 2011 Census data and railway passenger traffic flows data provided by the Ministry of Railways.

    The patterns of flows of people found in this study are broadly consistent with popular conception - less affluent states see more people migrating out while the most affluent states are the largest recipients of migrants. The cost of moving for people is about twice as much as it is for goods – another confirmation of priors.

    Current Affairs Quizzes for IAS Prelims Exam 2017- February Week 3

    2. Consider the following statements regarding the findings related labour movements in India:
    I. A new Cohort-based Migration Metric (CMM)—shows that annually inter-state labour mobility averaged 5-6 million people between 2001 and 2011, yielding an inter-state migrant population of about 60 million and an inter-district migration as high as 80 million.
    II. The first-ever estimates of internal work-related migration using railways data for the period 2011-2016 indicate an annual average flow of close to 9 million people between the states.
    III. In the period 2001-11, according to Census estimates, the annual rate of growth of labour migrants nearly doubled relative to the previous decade, rising to 4.5 per cent per annum in 2001-11 from 2.4 per cent in 1991-2001.

    Which of the following statement(s) is/are correct?
    a. Only I
    b. I and II
    c. II and III
    d. All of the above

    Answer: d

    Explanation:

    A new Cohort-based Migration Metric (CMM)—shows that annually inter-state labour mobility averaged 5-6 million people between 2001 and 2011, yielding an inter-state migrant population of about 60 million and an inter-district migration as high as 80 million. The first-ever estimates of internal work-related migration using railways data for the period 2011-2016 indicate an annual average flow of close to 9 million people between the states. Both these estimates are significantly greater than the annual average number of about 3.3 million suggested by successive Censuses and higher than previously estimated by any study.

    Another aspect- migration is accelerating. In the period 2001-11, according to Census estimates, the annual rate of growth of labour migrants nearly doubled relative to the previous decade, rising to 4.5 per cent per annum in 2001-11 from 2.4 per cent in 1991-2001. There is also a doubling of the stock of out-migrants to 11.2 million in the 20-29 year-old cohort alone. This acceleration has been accompanied by the surge of the economy. As growth increased in the 2000s relative to the 1990s, the returns to migration might have increased sufficiently to offset the costs of moving, resulting in much greater levels of migration.

    Current Affairs Quizzes for IAS Prelims Exam 2017- February Week 2

    3. Consider the following statements regarding the barriers involved in migration of people in India:
    I. One of the potentially exciting finding suggests, for which there is tentative not conclusive evidence, is that while internal political borders impede the flow of people, language does not seem to be a demonstrable barrier to the flow of people.
    II. Results from a gravity model indicate that political borders depress the flows of people, reflected in the fact that, controlling for distance, labour migrant flows within states are 4 times the labour migrant flows across states.

    Which of the following statement(s) is/are correct?
    a. Only I
    b. Only II
    c. Both I and II
    d. Neither I nor II

    Answer: c

    Explanation:

    One of the potentially exciting finding, for which there is tentative not conclusive evidence, is that while internal political borders impede the flow of people, language does not seem to be a demonstrable barrier to the flow of people. Results from a gravity model indicate that political borders depress the flows of people, reflected in the fact that, controlling for distance, labour migrant flows within states are 4 times the labour migrant flows across states. However, language barriers appear not to create comparable frictions to the movement of goods and people within India. The prescient permissiveness of the founding fathers in not dictating a lingua franca for the country appears to have succeeded in making language less salient an axis of cleavage across India, a remarkable achievement given the early anxieties about linguistic divisions.

    Complete study material of ECONOMIC SURVEY 2016-17

    4. Consider the following statements regarding the baseline census data for migration levels and growth of labour migration in India:
    I. The growth rate of migrants rose spectacularly to 4.5 per cent per annum, while the workforce growth rate actually fell.
    II. A breakdown by gender reveals that the acceleration of migration was particularly pronounced for females.
    III. In the 1990s female migration was extremely limited, and migrants were shrinking as a share of the female workforce.

    Which of the following statement(s) is/are correct?
    a. Only I
    b. I and II
    c. II and III
    d. All of the above

    Answer: d

    Explanation:

    The baseline census data for migration levels and growth shows that between 1991 and 2001 the growth rates of the workforce and migrants for economic reasons were nearly identical, at 2.4 per cent per annum. But as GDP growth started to soar over the next decade, the two began to diverge. The growth rate of migrants rose spectacularly to 4.5 per cent per annum, while the workforce growth rate actually fell.

    Thus, the migrants’ share of the workforce rose substantially. A breakdown by gender reveals that the acceleration of migration was particularly pronounced for females. In the 1990s female migration was extremely limited, and migrants were shrinking as a share of the female workforce. But in the 2000s the picture turned around completely: female migration for work not only grew far more rapidly than the female workforce, but increased at nearly twice the rate of male migration.

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    5. Which of the following new approach (es) was/were adopted to estimating migration within India?
    a. The approach is based on comparing similar cohorts across the two census periods, 2001 and 2011.
    b. The approach is based on data on railway passenger traffic in the unreserved category for the period 2011-2016.
    c. Both a and b
    d. Neither a nor b

    Answer: c

    Explanation:

    There were two new approaches to estimating migration within India. The first is based on comparing similar cohorts across the two census periods, 2001 and 2011. The second is based on data on railway passenger traffic in the unreserved category for the period 2011-2016.

    Cohort-based Migration Metric (CMM): In order to further analyze recent trends in labour mobility, a Cohort-based Migration Metric (CMM) is developed to gauge net migration at the state and district level. This metric considers net migration to be the percentage change in population between the 10-19 year-old cohort in an initial census period and the 20-29 year-old cohort in the same area a decade later, after correcting for mortality effects. It is likely to capture labour migration, as other bilateral movements for reasons such as marriage are netted out in the equation.

    Railway passenger data based migration metric: Monthly data was obtained from the Ministry of Railways on unreserved passenger traffic between every pair of stations in India for the years 2011-2016. Using the data it has the key idea is to use net annual flows of unreserved passenger travel as a proxy for work-related migrant flow. This class of travel serves less affluent people, who are more likely to travel for work-related reasons. It is also relatively unconstrained by capacity, hence reflecting the demand for travel, whereas reserved passenger traffic is more likely to be constrained by the supply of seats.

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