Parental absence, remittances and educational investment of children left behind: Evidence from Nepal

Nirmal Kumar Raut

Abstract


This study investigates the causal impact of work-related migration of parents on left behind children's education and investment on schooling. To isolate the direct impact of parental absence, we estimate the effects of parental migration and remittances separately. Using third round of Nepal Living Standard Survey and applying a two-step process to address self-selection into the migration statuses and correct for endogeneity into remittances, we find negative effect of parental absence and positive effect of remittances on education of children left behind. To further explore the heterogeneous impact of parental migration, we extend our analysis allowing the heterogeneity by educational status of mother. We find that the children of educated mother bear relatively less burden from parental migration. Furthermore, we find some evidence for heterogeneous effects of parental migration by child's gender and age.


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