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Information Frictions, Belief Updating and Internal Migration: Evidence from Ghana and Uganda

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  • Frohnweiler, Sarah

    (RWI)

  • Beber, Bernd

    (RWI)

  • Ebert, Cara

    (RWI)

Abstract

Information frictions about the benefits of migration can lead to inefficient migration choices. We study the effects of a randomly assigned information treatment about regional income differentials in Ghana and Uganda to learn about participants' belief updating and subsequent changes in migration intentions and destination preferences. Participants react to the provided information by correcting their destination preferences towards regions with higher incomes, whereas their intent to migrate changes less. Participants' belief updating follows an asymmetric process restricted to individuals who initially underestimated regional differentials. The results suggest that income differentials matter for where to and less whether to migrate.

Suggested Citation

  • Frohnweiler, Sarah & Beber, Bernd & Ebert, Cara, 2022. "Information Frictions, Belief Updating and Internal Migration: Evidence from Ghana and Uganda," IZA Discussion Papers 15826, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15826
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    References listed on IDEAS

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    Cited by:

    1. Erminia Florio, 2023. "Information Campaigns and Migration Perceptions," CEIS Research Paper 564, Tor Vergata University, CEIS, revised 31 Jul 2023.

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    More about this item

    Keywords

    income differentials; migration decision; belief updating;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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