Migration and Remittances

People have always migrated to seek better living conditions elsewhere. Today, international migration flows are mainly driven by the enormous wage differentials across countries. More than 200 million people currently live outside their countries of birth. Every year, they send remittances worth more than US$ 300 billion to their families back home. International labor migration has important economic, political and social consequences for both destination and origin countries. Nevertheless, it remains the least-studied aspect of globalization.

Our research concentrates on the impact of international labor migration on migrants themselves, on their families and communities, and more broadly on economic growth and equity in the countries of origin. Our ultimate objective is to help design migration policies that enhance the contribution of international labor migration to sustainable economic development. At present, our geographical focus is on Mexico and countries of the former Soviet Union, which are fairly representative of the countries sending migrants to the US and Europe, respectively.

•  Remittances, inequality and rural development

Remittances have the potential to contribute to development and reduce poverty. However, this potential may not be fully realized if remittances are disproportionally received by those who are already relatively rich. This project analyzes the dynamic relationship between migration, remittances, and inequality in rural Mexico. It also investigates to what extent remittances are used for productive investments and how these investments affect poverty over time.

•  Social and collective remittances

Migrants are typically exposed to different political systems and cultures abroad. It has been hypothesized that migrants absorb some of these values and spread them among their families and friends back home. Such flows of ideas may become important drivers of political and social change in communities with high emigration rates. This project analyzes how Moldova’s emigration flows to Russia and Western Europe change the voting behaviour of those who stay behind. It also studies the role of migrants in initiating and contributing to community projects.

•  Human trafficking and migrant exploitation

The growing, but largely un-met demand for legal migration opportunities has created a breeding ground for criminals and exploitative employers. This project examines for the case of Moldova which migrants fall victim to human trafficking or severe forms of exploitation and why. A particular focus is on recruitment processes and the role of social networks.

Project partners: J. Edward Taylor (UC Davis), Christoph Trebesch (University of Munich), International Organization for Migration (Moldova)