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Information, Intermediaries, and International Migration

Author

Listed:
  • Bazzi, Samuel
  • Cameron, Lisa
  • Schaner, Simone
  • Witoelar, Firman
Abstract
Job seekers face substantial information frictions, especially in international labor markets where intermediaries match prospective migrants with overseas employers. We conducted a randomized trial in Indonesia to explore how information about intermediary quality shapes migration outcomes. Holding access to information about the return to choosing a high-quality intermediary constant, intermediary-specific quality disclosure reduces the migration rate, cutting use of low-quality providers. Workers who do migrate receive better pre-departure preparation and have improved experiences abroad, despite no change in occupation or destination. These results are not driven by changes in beliefs about average provider quality or the return to migration. Nor does selection explain improved outcomes for those who migrate with quality disclosure. Together, our findings are consistent with an increase in the option value of search: with better ability to differentiate offer quality, workers search longer, select higher-quality intermediaries, and ultimately have better migration experiences.

Suggested Citation

  • Bazzi, Samuel & Cameron, Lisa & Schaner, Simone & Witoelar, Firman, 2022. "Information, Intermediaries, and International Migration," CEPR Discussion Papers 16811, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16811
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    Cited by:

    1. David McKenzie, 2024. "Fears and Tears: Should More People Be Moving within and from Developing Countries, and What Stops this Movement?," The World Bank Research Observer, World Bank, vol. 39(1), pages 75-96.

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    More about this item

    Keywords

    International migration; Information; Middlemen; Quality disclosure; Search;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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