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Information frictions, belief updating and internal migration: Evidence from Ghana and Uganda

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  • Frohnweiler, Sarah
  • Beber, Bernd
  • Ebert, Cara

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," Ruhr Economic Papers 987, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:987
    DOI: 10.4419/96973152
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    References listed on IDEAS

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    Cited by:

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    Keywords

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    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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