Fortune, Risk, and Remittances: An Application of Option Theory to Participation in Village-Based Migration Networks

In: International migration review: IMR, Band 37, Heft 4, S. 1252-1281

Abstract

Fortune and Risk are contending conceptions of the role of chance in the universe. From Chance … there issues both "hazard" and "opportunity"… The conception of Fortune is founded on the possibility of exercising some measure of choice over the outcomes one will accept from Chance.Paul A. David, 1974Altruism, insurance, and investment are three potential motives for migrant remittances that have been explored in the literature. The model developed in this paper posits an additional motive – that remittances are necessary for the migrant to participate in the employment networks that are based in the village, and thus are partially a payment for the option to change jobs within this network. The model is tested with data on Mexican migrants to the United States and finds support in that network strength and diversity increase remittances, whereas the insurance motive predicts stronger networks will decrease remittances.