International Migration, Remittances, and Schooling: Evidence from El Salvador

53 Pages Posted: 8 Jun 2003  

Alejandra Cox Edwards

California State University, Long Beach - Department of Economics

Manuelita Ureta

Texas A&M University - Department of Economics

Date Written: June 2003

Abstract

We examine the effect of remittances from abroad on households' schooling decisions using data for El Salvador. Following the massive war-related emigration of the 1980's, remittances became a significant source of household income throughout the 1990's. We use the Cox proportional hazard model to examine the determinants of school attendance. Measuring income from a source that is uncorrelated with parental schooling remittances , we find that remittances have a large, significant effect on school retention. We estimate that while household income net of remittances has a small, though significant, impact on the hazard of leaving school in rural and urban areas, remittances have a much larger impact on the hazard of leaving school. In urban areas, the effect of remittances is, at its smallest, 10 times the size of the effect of other income. In rural areas, the effect of remittances is about 2.6 times that of other income. Our finding is of interest in that it suggests that subsidizing school attendance, particularly in poor areas, may have a large impact on school attendance and retention, even if parents have low levels of schooling.

Suggested Citation

Edwards, Alejandra Cox and Ureta, Manuelita, International Migration, Remittances, and Schooling: Evidence from El Salvador (June 2003). NBER Working Paper No. w9766. Available at SSRN: https://ssrn.com/abstract=414264

Alejandra Cox Edwards (Contact Author)

California State University, Long Beach - Department of Economics ( email )

1250 Bellflower Blvd
Long Beach, CA 90840-4607
United States
562-985-5969 (Phone)
562-985-5804 (Fax)

Manuelita Ureta

Texas A&M University - Department of Economics ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

Paper statistics

Downloads
125
Rank
185,776
Abstract Views
2,493