The Role of Intermediaries in Rural-Urban Migrant Job Search

Most employers and employees in developing countries report being matched through informal intermediaries e.g. recruitment agents, labor contractors etc. However, little is known about the exact role they play in the job search and hiring process. Studying how informal intermediaries operate, their sources of information, geographic scope, choices over who to share what information with, choices over who to help and to what extent, relationships with jobseekers and client firms etc. is crucial to understanding the frictions that intermediaries face as well as address in labor markets.

This project will first conduct interviews with hiring managers at firms, workers (including migrants and non-migrants) and informal intermediaries to understand the organization of hiring in the garment export industry in India. Based on this, researchers will develop a survey of workers as well as intermediaries to establish facts the role of informal intermediaries. Informed by the findings of the survey, researchers will design interventions that address constraints faced by intermediaries and hence, improve search and matching of jobs between jobseekers (migrants and non-migrants) and firms.

Researchers plan to use their understanding of the barriers faced by informal intermediaries from the survey to design and test interventions that address those frictions using this digital platform. The study will highlight ways in which informal intermediaries along with digital platforms can be leveraged to widen access to economic opportunities.