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Regulation by reputation? Intermediaries, labor abuses, and international migration

Author

Listed:
  • Fernando, A. Nilesh
  • Singh, Niharika

Abstract

Migrant workers and employers rely on intermediaries to facilitate labor market placements. If information frictions obscure their reputation, however, intermediaries may underinvest in placement quality. Using data on more than 1.5 million Sri Lankan migrants to the Gulf region, we examine the effects of a government-run intermediary rating program that publicly revealed ratings two years after it was announced. Prior to the ratings’ public release, underperforming intermediaries invest in the rating criteria and place migrants in less abusive and more remunerative employment. Our results suggest the government’s threat of quality revelation induced intermediaries to prospectively screen employers and improve placement quality.

Suggested Citation

  • Fernando, A. Nilesh & Singh, Niharika, 2026. "Regulation by reputation? Intermediaries, labor abuses, and international migration," LSE Research Online Documents on Economics 140468, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140468
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    File URL: https://researchonline.lse.ac.uk/id/eprint/140468/
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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