A recent study has found that the income of Indian immigrants in the United States with low skill levels can increase by approximately 500%.
Significant Gain in Income
According to the World Development Report, Indians with low skill levels who migrated to the United States experience a substantial increase in their income of approximately 500%, which is then followed by those from the United Arab Emirates (UAE).
The report elaborates that there has been a 120% increase in income among Indians working abroad, as opposed to a 40% rise due to domestic migration.
It is worth mentioning that those who migrate to countries in the Gulf Cooperation Council (GCC) such as Oman, Kuwait, UAE, Saudi Arabia, Qatar, and Bahrain are expected to experience a comparatively lower increase in income.
As per the study, there are approximately 184 million migrants worldwide, out of which about 37 million are refugees.
According to the report titled “Migrants, Refugees and Societies,” factors such as destination, language proficiency, and age, in addition to skills, are significant determinants of income for migrants.
Multi Fold Jump in Income
Although the gains are higher for highly skilled workers like engineers or doctors, even low-skilled workers are experiencing a significant increase in their income.
Furthermore, the report stated that “migration results in substantial wage increases for most individuals whose skills and attributes align with the requirements of the destination society.
These increases frequently surpass what could be attained through internal migration to comparatively better-off areas within the country of origin.”
The benefits of migration are so substantial that it would take many years for an average low-skilled worker in certain countries of origin to earn the same income as that achieved by migrating to a high-income country, even with current rates of economic growth.
Furthermore, these gains are shared with families and communities in the countries of origin through remittances.
The report classified migrants into four distinct categories, namely refugees with in-demand skills, economic migrants possessing skills that align with demand, distressed migrants, and refugees.
According to the WDR, India-US, India-Bangladesh, and India-GCC have been regarded as some of the leading migrant corridors.
However, migration comes at a price for those who relocate to other countries in search of work.
On average, Indians who move to Qatar spend nearly two months’ worth of their earnings to cover migration costs.
Moreover, Indian migrants in the UAE typically send around 70% of their income to their families.
