IDEAS home Printed from https://ideas.repec.org/a/lde/journl/y2010i72p11-44.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • Carlos Medina & Lina Cardona, 2010. "The Effects of Remittances on Household Consumption, Education Attendance and Living Standards: the Case of Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 72, pages 11-44.
  • Handle: RePEc:lde:journl:y:2010:i:72:p:11-44
    as

    Download full text from publisher

    File URL: https://drive.google.com/open?id=0B4b2eQDlIUAJbUs3ZUk0dTlKeE0
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alejandro Gaviria, 2004. "Visa Usa: Fortunas Y Extravíos De Los Emigrantes Colombianos En Los Estados Unidos," DOCUMENTOS CEDE 003766, UNIVERSIDAD DE LOS ANDES-CEDE.
    2. Alejandro Gaviria Uribe & Carolina Mejía M., 2006. "La otra cara de la dia?spora: los vi?nculos de los emigrantes colombianos con su pai?s de origen," COYUNTURA SOCIAL 012891, FEDESARROLLO.
    3. Lina Cardona Sosa & Carlos Medina, 2006. "Migration as a Safety Net and Effects of Remittances on Household Consumption: The Case of Colombia," BORRADORES DE ECONOMIA 003219, BANCO DE LA REPÚBLICA.
    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 901-918, October.
    5. 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.
    6. Borjas, George J & Bronars, Stephen G, 1991. "Immigration and the Family," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 123-148, April.
    7. Ximena Cadena Ordóñez & Mauricio Cárdenas Santa María, 2004. "Las remesas en Colombia: costos de transacción y lavado de dinero," WORKING PAPERS SERIES. DOCUMENTOS DE TRABAJO 003127, FEDESARROLLO.
    8. Adolfo Meisel & Margarita Vega, 2005. "The Stature of the Colombian Elite Before the Onset of Industrialization, 1870-1919," Borradores de Economia 339, Banco de la Republica de Colombia.
    9. Johnson, George E & Whitelaw, W E, 1974. " Urban-Rural Income Transfers in Kenya: An Estimated-Remittances Function," Economic Development and Cultural Change, University of Chicago Press, vol. 22(3), pages 473-479, April.
    10. Alejandro Gaviria & Carolina Mejía, 2005. "Las varias caras de la diáspora: los nexos de los migrantes colombianos con su país de origen," DOCUMENTOS CEDE 006882, UNIVERSIDAD DE LOS ANDES-CEDE.
    11. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    12. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthieu Delpierre & Arnaud Dupuy & Michel Tenikue & Bertrand Verheyden, 2017. "The education motive for migrant remittances - Theory and evidence from India," CREA Discussion Paper Series 17-13, Center for Research in Economic Analysis, University of Luxembourg.
    2. repec:ebl:ecbull:eb-17-00542 is not listed on IDEAS
    3. Luis Arango & Dolores Mata & Nataly Obando, 2015. "Echoes of the crises in Spain and US in the Colombian labor market: a differences-in-differences approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(4), pages 441-477, November.
    4. Carlos Alberto Medina & Christian Manuel Posso, 2011. "Colombian Immigrants In The United States Of America: Education Levels, Job Qualifications And The Decision To Go Back Home," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, vol. 29(65), pages 12-59, June.

    More about this item

    Keywords

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

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lde:journl:y:2010:i:72:p:11-44. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlos Andrés Vasco Correa). General contact details of provider: http://edirc.repec.org/data/deantco.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.