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Information, Intermediaries, and International Migration

Author

Listed:
  • Samuel Bazzi
  • Lisa Cameron
  • Simone G. Schaner
  • Firman Witoelar

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

  • Samuel Bazzi & Lisa Cameron & Simone G. Schaner & Firman Witoelar, 2021. "Information, Intermediaries, and International Migration," NBER Working Papers 29588, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29588
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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.
    2. repec:wbk:wbrwps:10250 is not listed on IDEAS
    3. Cinque, Andrea & Gehrke, Esther & Reiners, Lennart, 2026. "Confined to stay: Migration restrictions, natural disasters, and poverty," Journal of Development Economics, Elsevier, vol. 178(C).
    4. Frohnweiler, Sarah & Beber, Bernd & Ebert, Cara, 2024. "Information frictions, belief updating and internal migration: Evidence from Ghana and Uganda," Journal of Development Economics, Elsevier, vol. 171(C).

    More about this item

    JEL classification:

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

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