We study the consequences of a series of migration policies that restricted the migration of
Indonesian female domestic workers towards traditional destinations, namely Malaysia and Saudi
Arabia. Our difference-in-differences specification exploits the differential impact across
Indonesian villages of this unique natural experiment, intended to stop repeated cases of
mistreatment of Indonesians working overseas. Our results suggest that the moratoria had
negative effects on economic activity and households’ welfare, and worsened labor market
conditions, especially for women, in the origin communities. Our results highlight the unintended
effects that migration restrictions may have precisely on those they were intended to benefit.