Remittances, liquidity constraints and human capital investments in Ecuador.
April 2008
Research Paper
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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.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- J22 : Time Allocation and Labor Supply
- O15 : Human Resources; Human Development; Income Distribution; Migration
- I20 : Education and Research Institutions: General
Automatically Extracted Terms
- remittances
- household
- shock
- school
- enrolment
- effect
- school enrolment
- migration
- child
- table
- ecuador
- child work
- children
- percent
- investment
- education
- capital
- trans-national networks
- country
- labour
