Labour Learning Curves and Productivity Convergence: The Role of Migrant Labourers in Kerala's Labour Market

Abstract

The demographic shift, labour scarcity and economic development in Kerala has made it one of the preferred destinations for interstate migrant workers in India. Migrant workers are now essential in various industries, including construction, manufacturing, agriculture, hospitality and services. Although they are playing an important role, there are questions about their skills, productivity and incorporation into the local job market. The present study analyses the contribution of migrant labourers in the process of labour learning curves and productivity outcome in Kerala. The primary data were obtained from 150 migrant labourers and 100 local labourers working in construction and manufacturing sector. The study compares skill acquisition, learning rates and productivity growth of migrant workers and local workers, based on comparative analysis and learning curve models. The findings indicate that migrant labourers tend to have lower levels of education and skills as compared to local labourers in the beginning. But, they have a much higher learning curve because they are working longer hours, are more motivated, and are getting much more on-the-job learning. As a result, productivity gaps become smaller with the passage of time and convergence between migrant and local workers is achieved. The study finds that migrant labourers are not just a substitute for local labour but are dynamic members of the Kerala economy. Steps to enhance participation in the labour market, vocational training and skills development are suggested to make a maximum impact.