A Gendered Analysis of the Influence of Remittances and Democracy on Human Capital Accumulation via Educational Achievements

Abstract

Although development experts acknowledge several development potentials of remittances, a clear understanding of the impacts of remittances and democracy on human capital accumulation regarding gender at the global level is still missing. In this research, we analyse the influences of remittances and democracy on human capital accumulation in terms of educational success, specifically primary, secondary and tertiary education, and average years of schooling with a gender focus at the global level through instrumental variables (IV) regression model. Our model using data from various valid international sources finds that (1) remittances have a significant positive impact on secondary and tertiary education and average years of schooling; (2) these have a higher significant effect on females’ education compared to their male counterparts; and (3) these are more instrumental for education in higher democratic developing countries rather than countries having no- or low-level of democracy. Next to remittances, the results find that (4) democracy has a significant positive influence on primary education and average schooling years; and (5) this is helpful for the educational advancement of both males and females but more effective for women compared to men. Based on our results, we suggest that remittances to developing countries and democratic practices in these countries can support investing and leveraging females’ education, which is a key mechanism for empowering women around the globe.