Why People Leave Equal Bihar for Unequal Mumbai

Understanding the Migration Paradox: Equality of Opportunity vs Equality of Outcomes

Why in News

A renewed national conversation has begun over inequality in India following discussions around the paradox of migration from relatively equal states like Bihar and Assam to more unequal ones like Maharashtra and Kerala. The debate highlights a critical distinction between equality of opportunity and equality of outcomes, which directly impacts patterns of internal migration.

Introduction

India is witnessing increasing migration from economically backward yet statistically “equal” states like Bihar and Assam to metropolitan areas with high levels of inequality such as Mumbai and Delhi. At first glance, this seems counterintuitive. Why would people flee from regions with less inequality to those with more?

The answer lies in the opportunities. As Neeraj Kaushal, Professor of Social Policy, points out, what matters more than equality of income or consumption is equality of opportunity. People migrate not just for money—but for a chance to grow, compete, and rise.

Key Issues and Background

India ranks among the world’s most unequal societies, depending on the lens:

  • In terms of income, India is ranked fourth among the most unequal economies, according to World Bank data.

  • However, when inequality is measured by consumption, India appears more equal.

This contradiction stems from differing data sets. Income data often reflects disparities more sharply, while consumption data smooths them over.

Critics often debate the validity of each lens, but the core issue remains: Are people able to improve their condition over time?

According to the Gini Coefficient (a measure of inequality):

  • States like Kerala, Maharashtra, and Haryana show high inequality but also high opportunity.

  • States like Bihar and Assam, though more equal, are poor in growth, job creation, and upward mobility.

Specific Impacts or Effects

  • Migration Trends:
    People from Bihar, Assam, and other equal-but-poor states migrate in large numbers to cities like Mumbai despite high income disparities there. This is because urban hubs offer better wages, education, and job opportunities.

  • Inequality of Opportunity vs Outcomes:
    Regions like Kerala and Mumbai have deep economic inequality, but they offer systems—education, entrepreneurship, healthcare—that allow individuals to rise if they work hard. This is less true in stagnant economies like Bihar.

  • Youth and Aspiration:
    Young people value mobility. In places with better infrastructure and private sector participation, they see a chance to strike it rich. Conversely, in equal but opportunity-starved regions, social mobility is rare.

  • Urban Pull Effect:
    Rural areas that appear equal are often equally poor. Cities may be unequal, but they offer access to capital, competition, and services—conditions necessary for economic progress.

Challenges and the Way Forward

  • Rethink Metrics:
    India must reassess how it measures inequality. Consumption-based equality does not reflect stagnation in income or lack of opportunity.

  • Policy Shift:
    Instead of focusing solely on outcomes (i.e., making everyone equally poor or equally rich), policymakers should prioritize access to quality education, healthcare, and jobs across regions.

  • Strengthening Rural Opportunity:
    Development must go beyond subsidy and welfare. Rural India needs entrepreneurial support, investment in industries, and digital access to close the opportunity gap.

  • Curbing Regional Inequality:
    South India and western states show higher productivity and upward mobility than central and eastern ones. This imbalance needs to be corrected through regional investment and policy devolution.

Conclusion

Migration from Bihar to Mumbai illustrates a larger truth: people would rather live in an unequal society with a chance to succeed than in an equal society with no prospects. The idea of equality must evolve—from equality in consumption to equality in opportunity. India must strive not just to distribute wealth, but to enable its creation.

Creating a truly aspirational society requires investment in human capital, reform in rural economies, and infrastructure that supports the ambitions of its people.

5 Questions and Answers

1. Why do people migrate from equal states like Bihar to unequal ones like Maharashtra?
Because unequal states offer more opportunities for growth, employment, and income mobility.

2. What is the difference between equality of outcome and opportunity?
Equality of outcome means everyone has the same income or consumption; equality of opportunity means everyone has the chance to improve their life, even if outcomes vary.

3. How does the Gini Coefficient relate to Indian states?
It shows that states like Kerala and Maharashtra have high inequality (high Gini), but still attract migrants because of better opportunities.

4. Why is consumption data misleading when measuring inequality?
Because it hides income disparities by averaging what people spend, not what they earn or own.

5. What should India prioritize to address inequality?
Investing in education, healthcare, jobs, and infrastructure to promote equality of opportunity across all regions.

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