Understanding Adverse Outcomes in Gulf Migration: Evidence from Administrative Data from Sri Lanka

Abstract

For many in South Asia, international migration to the Gulf countries provides access to lucrative employment opportunities without domestic comparison. Yet higher wages in Gulf countries are often coupled with poor working conditions, employer malpractice, and abuse. We utilize a unique administrative dataset on Sri Lankan migrant workers and complaints made by them to Sri Lankan Consulates to analyze the prevalence of workplace abuse and employer malpractice along this complex supply chain. Our analysis reveals that Sri Lankan migrants are systematically exposed to fraud and abuse that can, in part, be attributed to factors specific to the local recruitment agency who placed them. Understanding why recruitment agencies systematically differ in the quality of their placements may inform regulatory policy aimed at reducing the risks faced by migrants in destination countries.