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The Effects of Remittances on Household Consumption, Education Attendance and Living Standards: the Case of Colombia

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Author Info

  • Carlos Medina
  • Lina Cardona

Abstract

We assess whether international remittances affect Colombian household’s expenditure composition and demand of education. We exploit the migratory wave and institutional barriers to migration that occurred during the late 1990s, identifying the effect of remittances on expenditure composition. The findings suggest a positive effect on education, with beneficiary households spending about 10 percent more of total expenditure on education than non-beneficiary households. In contrast, no effect was found on enrolment rates. However, the analysis indicates an important effect on the probability of attending a private, rather than a public educational institution. Additionally, this study finds no effects on consumption, investment and health expenditure, although remittances do have salient effects on living standards.

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Bibliographic Info

Article provided by Universidad de Antioquia, Departamento de Economía in its journal LECTURAS DE ECONOMÍA.

Volume (Year): (2010)
Issue (Month): 72 ()
Pages: 11-44

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Handle: RePEc:lde:journl:y:2010:i:72:p:11-44

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Web page: http://economia.udea.edu.co
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Postal: Lecturas de Economía, Departamento de Economía, Calle 67, 53-108, Medellin 050010, Colombia.

Related research

Keywords: International Remittances; International Migration; Safety Net; Consumption Composition;

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  1. George J. Borjas & Stephen G. Bronars, 1990. "Immigration and the Family," NBER Working Papers 3509, National Bureau of Economic Research, Inc.
  2. Lina cardona Sosa & Carlos Medina, . "Migration as a Safety Net and Effects of Remittances on Household Consumption: The Case of Colombia," Borradores de Economia 414, Banco de la Republica de Colombia.
  3. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  4. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
  5. Adolfo Meisel & Margarita Vega, 2005. "The Stature Of The Colombian Elite Before The Onset Of Industrialization, 1870-1919," BORRADORES DE ECONOMIA 003627, BANCO DE LA REPÚBLICA.
  6. repec:idb:brikps:8548 is not listed on IDEAS
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