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Mixed effects of remittances on child education

Author

Listed:
  • José R. Bucheli

    () (University of New Mexico)

  • Alok K. Bohara

    () (University of New Mexico)

  • Matías Fontenla

    () (University of New Mexico)

Abstract

Abstract We exploit the size of the 2010 Ecuadorian Census to estimate the effect of remittances on secondary school enrollment across four key dimensions: gender, household wealth, rural vs. urban, and family migration status. Using a bivariate probit model that accounts for both endogeneity and non-linearity issues, we find both positive and negative effects of remittances on the likelihood of schooling. The strongest positive effects are for poorer, urban males, while the negative effects are for rural females. For children in wealthier households, the effects of remittances are either negative or non-significant. This suggests that the positive income effects of remittances may be offset by the negative effects of a missing parent due to migration, more visible in wealthier families where financial constraints may not be as binding. We find further support for this by estimating the effects of remittances conditional on migration status. Our results show positive effects on schooling for non-migrant households that receive remittances and no effects for children living in households where at least one parent has migrated. The sharp contrasts within and across groups, while using the same data and econometric specifications, help explain the lack of consensus in the literature.

Suggested Citation

  • José R. Bucheli & Alok K. Bohara & Matías Fontenla, 2018. "Mixed effects of remittances on child education," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-18, December.
  • Handle: RePEc:spr:izamig:v:8:y:2018:i:1:d:10.1186_s40176-017-0118-y
    DOI: 10.1186/s40176-017-0118-y
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    References listed on IDEAS

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    Cited by:

    1. Annie L. Hines & Nicole B. Simpson, 2019. "Migration, remittances and human capital investment in Kenya," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(3), November.

    More about this item

    Keywords

    International migration; Remittances; Education; School enrollment; Ecuador; Latin America;

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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