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 in- crease school enrollment 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, trans-national networks
Persistent URL dx.doi.org/10.1016/j.worlddev.2008.10.006, hdl.handle.net/1765/17438
Series ISS Staff Group 1: Economics of Sustainable Development
Journal World Development
Calero, C, Bedi, A.S, & Sparrow, R.A. (2009). Remittances, Liquidity Constraints and Human Capital Investments in Ecuador. World Development, 37(6), 1143–1154. doi:10.1016/j.worlddev.2008.10.006