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

Author

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

Abstract

Information frictions about benefits of migration can lead to inefficient migration choices. We study the effects of randomly assigned information treatments concerning regional income differentials in Ghana and Uganda to explore participants’ belief updating and changes in internal migration intentions, destination preferences, and actual migration. Treated participants prefer higher income destinations, while effects on intent plausibly follow subjects’ initial under- or overestimation of potential gains, with asymmetric updating propensities. Effects persist for 18 months, and discussions with others about migrating increase, but actual migration does not. Knowledge about income affects intentions and destination choices, but barriers to actual relocation are complex.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:deveco:v:171:y:2024:i:c:s0304387824000609
    DOI: 10.1016/j.jdeveco.2024.103311
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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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