Abstract

Abstract As a source of income, remittances can be spent on consumption and investment. The aim of this study is to quantify the effect of remittances on investment in education: Do remittances increase household education expenditure? To answer this question we apply meta-regression analysis to 1343 estimates of this effect drawn from 73 studies, covering 30 countries. Our findings confirm the importance of economic resources to educational choices. When the evidence base is corrected for sample selection, reverse causality, and research design differences, the incidence of international remittances increases education expenditure by about 35% in most countries, and by about 53% in Latin America, though remittances have no effect in Eastern Europe and East Asia. Remittances from domestic migration have smaller effects on education expenditure than international remittances. We find no differences in the effect between males and females.

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