Regulation by Reputation? Intermediaries, Labor Abuses, and International Migration

Abstract

Using data on 1.5 million Sri Lankan migrants to the Gulf region, this paper tests whether a regulator's public rating of recruitment intermediaries improves placement quality. Agencies eligible for the program, especially previously under-performing ones, invest in the rating criteria and are less likely to exit the market; eligible agencies see more and higher-quality foreign demand once ratings are revealed, and migrants placed through them receive higher salaries and encounter less abusive employers.