This paper uses a small, non-representative matched survey of Nigerian migrants in the US and their origin families in Nigeria (1997) to examine savings in the country of origin. Since the study has information on both migrant- and origin-household characteristics, it is able to reduce concerns about omitted variable bias. Results suggest that remittance transfers are motivated by altruism: remittances sent home increase as the family’s asset holdings (landholdings) at home declines. However, savings in the origin country are dominated by investment motives because savings at home are positively associated with the family’s asset holdings at home. The author also finds that unskilled and less-educated migrants have higher savings rates at home.

©2007 Elsevier.