Migrants’ International Transfers and Educational Expenditure

Abstract:     
The primary objective of this article is to cast some light upon the relationship between education expenditure and the volume of remittances sent to Albania from abroad by international migrants. To assess the existence of an education enhancing effect of remittances, an Engel curve framework is used. In addition, quintile regression analysis is employed to investigate whether migrants’ remittances have a differentiated effect on various quantiles of the conditional distribution of education consumption. The two main empirical findings are that household income has a positive and well‐determined impact on education expenditure, whereas international transfers do not influence education spending.

Number of Pages in PDF File: 31

Keywords: Migrant remittances, Engel curves, education expenditure

JEL Classification: F24, I21, P36

Accepted Paper Series