Remittances, Liquidity Constraints and Human Capital Investments in Ecuador

Research output: Working paperAcademic

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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.
Original languageEnglish
Place of PublicationDen Haag
PublisherInternational Institute of Social Studies (ISS)
Number of pages25
Publication statusPublished - Apr 2008

Publication series

SeriesISS working papers. General series
Number458
ISSN0921-0210

Bibliographical note

JEL Classification
I20, J22, O15

Series

  • ISS Working Paper-General Series

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