The impact of foreign and domestic remittance types and senders on education outcomes

Abstract

Migration and remittances are very important for Nepal, yet the country continues to be plagued by low financial development. Increases in human capital investments, such as enrollment of school‐aged children, are a possible gain from the country's labor movements, which can be leveraged further through an understanding of the microeconomic processes involved. This study examines how remittances from both household and nonhousehold members affect school enrollment rates for children in Nepalese families. We analyze the positive and negative impacts of migration and remittances separately and consider both the type and location of the remittance sender using the Nepal Living Standards Survey (NLSS‐III) of 9,335 school‐aged children. We find enrollment more associated with an exogenous process and use this to estimate marginal effects in which remittances significantly increase children's school enrollment by about 2% points in most cases. These results suggest policymakers should encourage domestic migration (which allows proximity between senders and recipients of remittances as well as less family disruption).

Study on Nepalese migrant remittances: usage, gender perspective and remittance methods

“…The impact of remittances on the enrolment rates of children in Nepalese families was studied, considering whether the remittance sender was a household or non-household member, as well as their type and location. The study found that there were both positive and negative effects of remittances on education outcomes Stanley & Fleming, 2019). Thus, all the interpretations of the tables and charts mentioned above behaves as an answer in the sense of the positive confirmation to the notion that in general the usage of type of remittance have a preferred order as displayed in table 9.…”

“…It is important to note that the impact of remittances can vary depending on various factors such as the source of remittances, the type of remittance sender, and the volatility of remittance inflows Stanley & Fleming, 2019). The impact of remittances on the enrolment rates of children in Nepalese families was studied, considering whether the remittance sender was a household or non-household member, as well as their type and location.…”