Information, Intermediaries, and International Migration

Samuel Bazzi, Lisa Cameron, Simone Schaner and Firman Witoelar

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: Job seekers often face substantial information frictions related to potential job quality. This is especially true in international labor markets, where intermediaries match prospective migrants with employers abroad. We conducted a randomised trial in Indonesia to explore how information about intermediary quality shapes migration choices and outcomes. Information reduces the migration rate, lowering use of low-quality intermediaries. However, workers who migrate receive better pre-departure preparation and have higher-quality job experiences abroad, despite no change in occupation or destination. Information does not change intentions to migrate or beliefs about the return to migration or intermediary quality. Nor does selection explain the improved outcomes for workers who choose to migrate with the information. Together, our findings are consistent with an increase in the option value of search: with better ability to differentiate offer quality, workers become choosier and ultimately have better migration experiences. This offers a new perspective on the importance of information and matching frictions in global labor markets.

Keywords: International Migration; Information; Middlemen; Quality Disclosure; Search (search for similar items in EconPapers)
JEL-codes: D83 F22 L15 O15 (search for similar items in EconPapers)
Pages: 92pp
Date: 2021-12
New Economics Papers: this item is included in nep-int, nep-lab, nep-sea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://melbourneinstitute.unimelb.edu.au/__data/a ... 997508/wp2021n30.pdf (application/pdf)

Related works:
Working Paper: Information, Intermediaries, and International Migration (2022)
Working Paper: Information, Intermediaries, and International Migration (2022)
Working Paper: Information, Intermediaries, and International Migration (2021)
Working Paper: Information, Intermediaries, and International Migration (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2021n30

Access Statistics for this paper

More papers in Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Sheri Carnegie ().