the policy suggestions should be to encourage further the relaxation of labour mobility policies and to push forward with complete urbanisation instead of setting up more regulations deterring labour migration accordingly and more importantly the government should focus on building up the social welfare system and through it eliminate the ruralurban gap in terms of provision of and access to social welfare instead of trying to redistribute through labour market interventions that is the large flows of the most productive population in the rural sector to the urban sector have brought about and will further lead to a relative fall in rural usual households income level whereas this chapter mainly focuses on the positive effects of labour migration in reducing income inequality the relative status change of those leftbehind is also a crucial challenge that policy makers have to face