Information, Intermediaries, and International Migration

Samuel Bazzi, Lisa Cameron, Simone Schaner and Firman Witoelar

No 14945, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 randomized 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: 91 pages
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)

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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)
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