Remittances, Liquidity Constraints and Human Capital Investments in Ecuador

Carla Calero, Arjun Bedi, Robert Sparrow

    Research output: Contribution to journalArticle

    Abstract

    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 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.
    Original languageEnglish
    Pages (from-to)1143-1154
    JournalWorld Development
    Volume37
    Issue number6
    DOIs
    Publication statusPublished - 2009

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