Household Remittance Inflows and Child Education in Ghana: Exploring the Gender and Locational Dimensions

Abstract

This paper investigates the effect of household remittance inflows on child education in Ghana using data from the Ghana Living Standards Survey Six (GLSS 6). Employing an instrumental variable approach and including children at the nursery and kindergarten levels in our study, the following findings are established. First, remittance inflows generally reduce household liquidity constraints, translating into increased number of school hours for their children. Second, while remittance improves child education in the urban areas, it reduces school hours for their counterparts in rural communities. Third, gains in school hours from remittance inflows are much greater for boys but do not make any or much of a difference in improving that of the girl-child. We call for financial system regulations that help to substantially reduce transaction costs on (or rigidities in) remittance inflows so that its influence on child education outcomes will be improved.

Keywords: Remittances; Child education; Gender; Rural; Instrumental variable; Household