"The Impact of Remittances on Children’s Educational Outcomes: The Case" by Neha Reddy Kalwala

Date of Award

5-2025

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Economics

First Advisor

Dr. Alexander Persaud

Second Advisor

Dr. Maia Linask

Third Advisor

Dr. Alexander Persaud

Abstract

This paper investigates whether children in Indian households receiving more remittances have better educational outcomes. India is the world’s largest recipient of remittances and is characterized by a unique socioeco- nomic and demographic context that makes any educational improvements or disparities particularly impactful on global education metrics. Using panel data from the India Human Development Survey, I employ OLS and logit regressions with household fixed effects, a difference-in-differences strategy, and a Heckman selection model. Two measures of educational outcomes are analyzed: weekly hours spent at school and school enrollment. Findings suggest that an increase in remittances leads to a higher likelihood of enrollment. This effect is particularly strong for lower-middle-income households, for whom a Rs.1,000 increase in annual remittances leads to a 3.31 percentage point rise in enrollment probability. When scaled nationally, this implies that around 200,000 additional children in India would enroll in school if all remittance-receiving households in this income group received Rs.1,000 (USD 12) more per year.

Included in

Economics Commons

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