Does "buyer beware" work in migration? Contracting between brokers and migrants in Vietnam. (13th April 2016)

• Record Type: Journal Article
• Authors: Phuong, Nguyen Quynh; Venkatesh, Sundar
• Is Part Of: International migration. Volume 54:Number 6(2016)
• Page Start: 94
• Page End: 108
• Publication Date: 2016-04-13
• Subjects: Emigration and immigration -- Periodicals; 304.8
• DOI: 10.1111/imig.12252
• Languages: English
• ISSNs: 0020-7985

Abstract

Abstract: This article is an attempt to open the lid a little of the "black box of migration" i.e. brokers. Analysing contracts between brokers and labour migrants, we identify four different forms of exploitation of migrants by brokers: expropriation of skill premium, risk shifting, over‐charging, and non‐refund of deposits. Opportunistic behaviour by brokers, as evidenced by such exploitation, is seen as a market failure that is explained by human attributes and transactional characteristics. Given the rigidities in the human attributes of the contracting parties and the nature of migration as a risky multi‐period transaction, proposals are made for non‐market interventions, which can lead to more equitable contracting.