This study develops a differentiated-good, two-factor, two-region model wherein households face Knightian uncertainty over wage income when deciding to migrate. Uncertainty over wage income at the destination makes emigration less attractive; consequently, interregional labor allocation becomes inefficient, causing wage differentials across regions. In this context, the provision of accurate information to reduce uncertainty helps increase world production by correcting the distorted labor allocation. However, this does not necessarily imply Pareto gains, because the host region suffers from a deterioration in its terms of trade. Additionally, we show that in the presence of uncertainty, an interregional income transfer compensates for the host region's welfare loss, leading to a Pareto improvement.