Remittances, Liquidity Constraints and Human Capital Investments in Ecuador
AbstractSummary Over the last decade Ecuador has experienced a strong increase in financial transfers from migrated workers. This paper investigates how remittances via trans-national networks affect human capital investments through relaxing resource constraints and facilitate households in consumption smoothing by reducing vulnerability to economic shocks. Our results show that remittances increase school enrollment and decrease incidence of child work, especially for girls and in rural areas. Furthermore, we find that aggregate shocks are associated with increased work activities, while remittances are used to finance education when households are faced with these shocks.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 37 (2009)
Issue (Month): 6 (June)
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Web page: http://www.elsevier.com/locate/worlddev
migration remittances trans-national networks human capital Latin America Ecuador;
Other versions of this item:
- Calero, Carla & Bedi, Arjun S. & Sparrow, Robert, 2008. "Remittances, Liquidity Constraints and Human Capital Investments in Ecuador," IZA Discussion Papers 3358, Institute for the Study of Labor (IZA).
- Calero, C. & Bedi, A.S. & Sparrow, R.A., 2008. "Remittances, liquidity constraints and human capital investments in Ecuador," ISS Working Papers - General Series 18735, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
- I20 - Health, Education, and Welfare - - Education - - - General
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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