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How do Migration and Remittances Affect Human Capital Investment? The Effects of Relaxing Information and Liquidity Constraints

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  • Chakra P. Acharya
  • Roberto Leon-Gonzalez

Abstract

This article explores the heterogeneous effects of the migration-remittance process on the educational attainment of Nepalese children. The results suggest that when controlling for remittances, the children of more educated or informed parents suffer from parental absence, while the children of less informed parents gain from migration, implying that the migration experience helps less educated parents estimate the value of and returns to education more precisely. The results also suggest that remittances help severely credit-constrained households enrol their children in school and prevent dropouts. These remittances help households that face less severe liquidity constraints increase their investment in quality education.

Suggested Citation

  • Chakra P. Acharya & Roberto Leon-Gonzalez, 2014. "How do Migration and Remittances Affect Human Capital Investment? The Effects of Relaxing Information and Liquidity Constraints," Journal of Development Studies, Taylor & Francis Journals, vol. 50(3), pages 444-460, March.
  • Handle: RePEc:taf:jdevst:v:50:y:2014:i:3:p:444-460
    DOI: 10.1080/00220388.2013.866224
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    References listed on IDEAS

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    1. Acosta, Pablo & Fajnzylber, Pablo & Lopez, J. Humberto, 2007. "The impact of remittances on poverty and human capital : evidence from Latin American household surveys," Policy Research Working Paper Series 4247, The World Bank.
    2. Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Baas, Timo & Melzer, Silvia, 2016. "The Macroeconomic Impact of Remittances: A Sending Country Perspective," Annual Conference 2016 (Augsburg): Demographic Change 145631, Verein für Socialpolitik / German Economic Association.
    2. Valerie Mueller & Chiara Kovarik & Kathryn Sproule & Agnes Quisumbing, 2015. "Migration, Gender, and Farming Systems in Asia: Evidence, Data, and Knowledge Gaps," Working Papers id:7478, eSocialSciences.
    3. repec:jed:journl:v:42:y:2017:i:2:p:1-15 is not listed on IDEAS
    4. Bargain, Olivier & Boutin, Delphine, 2014. "Remittances and Child Labour in Africa: Evidence from Burkina Faso," IZA Discussion Papers 8007, Institute for the Study of Labor (IZA).
    5. Chakra P. Acharya & Roberto Leon-Gonzalez, 2016. "International Remittances, Rural-Urban Migration, and the Quest for Quality Education: The Case of Nepal," GRIPS Discussion Papers 15-25, National Graduate Institute for Policy Studies.
    6. repec:pid:journl:v:55:y:2016:i:2:p:123-149 is not listed on IDEAS
    7. Chakra Pani Acharya & Roberto Leon-Gonzalez, 2018. "The Quest for Quality Education:International Remittances and Rural-Urban Migration in Nepal," GRIPS Discussion Papers 17-13, National Graduate Institute for Policy Studies.

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