Remittances, liquidity constraints and human capital investments in Ecuador

Carla Calero, Arjun Bedi and Robert Sparrow ()

ISS Working Papers - General Series from International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague

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 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: Ecuador.; Latin America; human capital; migration; remittances; transnational networks (search for similar items in EconPapers)
JEL-codes: I20 J22 O15 (search for similar items in EconPapers)
Date: 2008-04-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

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Related works:
Journal Article: Remittances, Liquidity Constraints and Human Capital Investments in Ecuador (2009)
Working Paper: Remittances, Liquidity Constraints and Human Capital Investments in Ecuador (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ems:euriss:18735

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