Columbia International Affairs Online: Working Papers

CIAO DATE: 05/2014

Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development

Michael Clemens, Timothy N. Ogden

February 2014

Center for Global Development

Abstract

It is time to fundamentally reframe the research agenda on remittances, payments, and development. We describe many of the research questions that now dominate the literature and why they lead us to uninformative answers. We propose reasons why these questions dominate, the most important of which is that researchers tend to view remittances as states do (as windfall income) rather than as families do (as returns on investment). Migration is, among other things, a strategy for financial management in poor households: location is an asset, migration an investment. This shift of perspective leads to much more fruitful research questions that have been relatively neglected. We suggest 12 such questions.