Measurement and determinants of economic inequality between migrants and non-migrants: evidence from Oaxaca-Blinder decomposition analysis of Uttar Pradesh, India

Abstract

This paper investigates the economic inequality between migrants and non-migrants employing Gini inequality index and Lorenz curve based on household consumption expenditure from the Periodic Labor Force Survey (PLFS) for 2020–2021. The findings indicate a significant economic inequality gap between migrants and non-migrants across the geographical regions of Uttar Pradesh, India. Additionally, highlights the effect of caste and religious affiliation on migratory patterns and living standards. Based on the Ordinary Least Squares regression results with Oaxaca-Blinder decomposition, the demographic and socioeconomic factors such as education, gender, religion, caste and households’ size significantly identify the economic inequality gap between migrants and non-migrants. Our findings provide significant evidence for effective delivery of social protection policies at regional level. Moreover, intra-government and inter-government cooperation should be taken into the consideration for migrant workers in bringing their healthy economic and social status in both origin and destination places. © 2025 Informa UK Limited, trading as Taylor & Francis Group.