Abstract

We study the impact of international remittances on schooling in the Philippines. Unlike the previous studies, we allow for the potential heterogeneity in the impact across households due to the school-age child's relationship to the head of household. This is potentially important, because the employment opportunities abroad are usually taken at the expense of the time with children. We find that there are negative guardian effects when children with overseas parents are looked after by someone other than their parents. However, these negative effects tend to be outweighed by the positive impacts of remittance flows from overseas.

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