AbstractWe analyze the migrant smuggling market where smugglers differ in their capacities to exploit their clients' labor in the destination. We show that when exploitation capacities are private information, the equilibrium may be characterized by adverse selection. In such a case, policies that diminish the availability of smuggling services to potential migrants inevitably raise the mean exploitation of smuggled labor.
Key words: migrant smuggling, migrant exploitation
JEL classifications: F22, J61, D82, L15, K42