Testing for Repugnance in Economic Transactions: Evidence from Guest Work in the Gulf - Working Paper 463
Workers from poor countries can find enormous economic opportunity by working temporarily in a rich country. But agencies that fight global poverty do little to facilitate guest work. This may be because guest workers are perceived to typically suffer negative side effects that outweigh the benefits. This paper uses a natural experiment to test several perceptions of harmful side-effects on Indian guest workers in the Gulf. The research shows little evidence that the harmful side-effects often ascribed to guest work are typical and systematic, though this does not contradict the occurrence of many individual cases of harmful side-effects.