By integrating migration research in a comprehensive framework of labour allocation at household and village levels, this study shows how migration factors are crucial in understanding the transformations of rural communities in developing countries. Data collected in 4 villages within a wet rice-growing area of Central Java, Indonesia, are used to examine why some villages and households contribute a greater share of migrants than others. The decision to migrate is located within the constraints and opportunities of local labour markets, and migration is treated as one among many alternatives for allocating the labour of household members. The type of labour allocation choices made is lined to the demographic structure of households, the social position of the household, and the employment opportunities available within the community. These factors are then related to processes of rural development.