Debt-financed migration: Agency and the productivity of debt

Journal of Ethnic & Migration Studies, 2024 (https://doi.org/10.1080/1369183X.2024.2407049)

Debt-financed migration, or the financing of migration through borrowing, has received limited scholarly attention. Although scholars recognize its importance, they rarely delve into it as a subject of study. Due to the lack of comprehensive discussions on this topic and the growing prevalence of migration flows in which debt is a crucial funding mechanism, this article provides a literature review on the two primary funding mechanisms: salary deductions and upfront payments. Regarding salary deductions, facilitators provide migrants with upfront funds that are subsequently deducted from their salaries by their employers at their destination. In the case of upfront payments, migrants borrow money to cover expenses either in advance or upon arrival and then repay these loans through remittances. Numerous works take an economic perspective, highlighting the risks of debt bondage in salary deductions and vulnerability associated with upfront payments. This literature review supplements the dominant framework by providing empirical insights into agency rooted in what I call “the productivity of debt.” This means that migrants strategically use debt to secure protection, pursue future prospects, and enhance their creditability as a shield against debt bondage and vulnerability. To support this argument, I review academic and applied studies on debt-financed migration.