Migrant Networks and Job Search: Evidence from Thailand
41 Pages Posted: 27 Aug 2014 Last revised: 11 Mar 2016
Date Written: May 5, 2014
Social networks may be important to internal migrants in developing countries where the extent of information asymmetry is sizeable. This paper identifies network effects among rural-urban migrants in Thailand by exploiting heterogeneous response to rainfall shocks as exogenous variation affecting network size. While networks substantially reduce the duration of job search, in this case they tend to direct migrants towards agricultural (rather than non-agricultural) jobs because the local average treatment effects estimator identifies what happens to employment outcomes when the agricultural part of the network increases.
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