Migrant network in urban labour market: evidence from India

Ajay Sharma, Indian Institute of Management Indore

Using a nationwide survey of migrants in India, we analyze how origin, size, efficiency and diversity characteristics of migrant network affect employment outcomes of migrants in urban labour market. We find that weighted migrant stock reflecting migration experience has an inverted-U relationship with the probability of finding a job. We show that efficiency effect through employed migrants and diversity effect through weak ties positively affects employment outcome. We also document that effect of migrant network varies with size of labour market i.e. in cities with million plus population or lower; type of migrants i.e. existing or new.