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Parental absence, remittances and educational investment in children left behind: Evidence from Nepal

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  • Nirmal Kumar Raut
  • Ryuichi Tanaka

Abstract

This paper utilizes the third wave of the Nepal Living Standards Survey to assess the causal impact of parental absence and remittances on the educational investment in children left behind. Unlike previous studies, we separately identify parental absence and remittances, with careful consideration of self‐selection into migration and endogeneity of remittances. Using a two‐step estimation strategy, we show that parental absence has a substantive disruptive effect on education of children left behind, while remittances have a positive effect. In addition, we show that non‐parental absence has no effect on education. Further, we provide supporting evidence about the channels to disruption. Finally, we show some heterogeneity results by the child’s gender and education status of the mother. The results by child’s gender confirm that remittances relax the liquidity constraints of households by investing in education of the girls. Further, the results by education status of the mother provide evidence that an educated mother can play a role in neutralizing or mitigating the negative effects of parental absence.

Suggested Citation

  • Nirmal Kumar Raut & Ryuichi Tanaka, 2018. "Parental absence, remittances and educational investment in children left behind: Evidence from Nepal," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1642-1666, November.
  • Handle: RePEc:bla:rdevec:v:22:y:2018:i:4:p:1642-1666
    DOI: 10.1111/rode.12410
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    Cited by:

    1. Gautam, Narayan Prasad & Chhetri, Bir Bahadur Khanal & Raut, Nirmal Kumar & Tigabu, Mulualem & Raut, Nirjala & Rashid, Muhammad Haroon U. & Ma, Xiangqing & Wu, Pengfei, 2020. "Do earthquakes change the timber and firewood use pattern of the forest dependent households? Evidence from rural hills in Nepal," Forest Policy and Economics, Elsevier, vol. 119(C).
    2. Nilkanth Kumar & Nirmal Kumar Raut & Suchita Srinivasan, 2022. "Herd behavior in the choice of motorcycles: Evidence from Nepal," CER-ETH Economics working paper series 22/366, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

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