Over the last decade Ecuador has experienced a strong increase in financial transfers from migrated workers. This paper investigates how remittances via trans-national networks affect human capital investments through relaxing resource constraints and facilitate households in consumption smoothing by reducing vulnerability to economic shocks. Our results show that remittances increase school enrolment and decrease incidence of child work, especially for girls and in rural areas. Furthermore, we find that aggregate shocks are associated with increased work activities, while remittances are used to finance education when households are faced with these shocks.

Additional Metadata
Keywords Ecuador., Latin America, human capital, migration, remittances, transnational networks
JEL Education and Research Institutions: General (jel I20), Time Allocation and Labor Supply (jel J22), Human Resources; Human Development; Income Distribution; Migration (jel O15)
Publisher International Institute of Social Studies of Erasmus University (ISS)
Persistent URL hdl.handle.net/1765/18735
Calero, C, Bedi, A.S, & Sparrow, R.A. (2008). Remittances, liquidity constraints and human capital investments in Ecuador.. ISS Working Paper Series / General Series (Vol. 458, pp. 1–25). International Institute of Social Studies of Erasmus University (ISS). Retrieved from http://hdl.handle.net/1765/18735