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The Impact of International Remittances on Child Outcomes and Household Expenditures in Nepal

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  • Apsara Karki Nepal

Abstract

Nepal has one of the highest ratios of international remittances to gross domestic product in the world. We examine whether the massive inflow of international remittances affects child schooling, child labour and household expenses. Controlling extensively for a host of observed characteristics of households and migrants, and using an instrumental variable approach, this research finds no effect of international remittances on child education or child labour in Nepal. However, it does find a significant increase in non-food expenditures, including education spending, due to international remittances. Despite increased expenditure on child education, educational outcomes are not improving because of international remittances.

Suggested Citation

  • Apsara Karki Nepal, 2016. "The Impact of International Remittances on Child Outcomes and Household Expenditures in Nepal," Journal of Development Studies, Taylor & Francis Journals, vol. 52(6), pages 838-853, June.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:6:p:838-853
    DOI: 10.1080/00220388.2015.1107045
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    Cited by:

    1. Mishra, Khushbu & Kondratjeva, Olga & Shively, Gerald E., 2022. "Do remittances reshape household expenditures? Evidence from Nepal," World Development, Elsevier, vol. 157(C).
    2. Apsara KARKI NEPAL & Martin HALLA & Steve STILLMAN, 2025. "Violent conflict and the child quantity–quality tradeoff," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 91(3), pages 343-377, September.
    3. Tiwari, Smriti, 2021. "Do macroeconomic fluctuations at destination matter in determining migrants’ return decisions?," World Development, Elsevier, vol. 148(C).
    4. Apsara KARKI NEPAL & Mani NEPAL & Randall BLUFFSTONE, 2023. "International labour migration, farmland fallowing, livelihood diversification and technology adoption in Nepal," International Labour Review, International Labour Organization, vol. 162(4), pages 687-713, December.
    5. Dhruba Bhandari, 2020. "Are Households Utilizing Remittance on Quality Education? An Empirical Study from Nepal," Journal of Development Innovations, KarmaQuest International, vol. 4(1), pages 179-195, July.
    6. Tello, Michelle & Sánchez, Gonzalo E., 2025. "Paternal migration and schooling choices. A study on children left behind in Ecuador," International Journal of Educational Development, Elsevier, vol. 114(C).
    7. Hari Sharma & John Gibson, 2020. "Effects of International Migration on Child Schooling and Child Labour: Evidence from Nepal," Working Papers in Economics 20/07, University of Waikato.
    8. Shaleen Khanal, 2018. "Gender Discrimination in Education Expenditure in Nepal: Evidence from Living Standards Surveys," Asian Development Review, MIT Press, vol. 35(1), pages 155-174, March.
    9. 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.
    10. Ye, Juntao & Cai, Liming & Shi, Xinjie & Cheng, Mingwang, 2024. "Pursuing a brighter future: Impact of the Hukou reform on human capital investment in migrant children in China," China Economic Review, Elsevier, vol. 85(C).
    11. Gaurav Datt & Liang Choon Wang & Samia Badji, 2020. "Is emigration of workers contributing to better schooling outcomes in Nepal?," Review of International Economics, Wiley Blackwell, vol. 28(4), pages 1046-1075, September.

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