Information, Intermediaries, and International Migration / Samuel Bazzi, Lisa Cameron, Simone G. Schaner, Firman Witoelar.

Format:

Book

Author/Creator:

Bazzi, Samuel.

Contributor:

National Bureau of Economic Research.

Cameron, Lisa.

Schaner, Simone G.

Witoelar, Firman.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29588.

NBER working paper series no. w29588

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2021.

Summary:

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.

Notes:

Print version record

December 2021.