Technical Report The Quest for Quality Education: International Remittances and Rural-Urban Migration in Nepal

ACHARYA, Chakra Pani  ,  LEON-GONZALEZ, Roberto

17-132018-02 , GRIPS Policy Research Center
Despite a large growth in domestic and international migration and remittances in recent decades, there are limited works that systematically identify and establish interactions between internal and international migration. Using primary data from new urban areas of Nepal, we identify households that had migrated from rural to urban areas, explore their migration practices and educational investment behaviors, and analyze the effects of international migration and remittances on investment in education. The results show that, despite their lower income and consumption, migrant households that have members abroad have higher human capital investment measured by the level and budget share of expenditure on children’s education and the time their children spend for studying at home than do urban-native and other types of migrant households. Our findings suggest that searching for better education is one important motivation for migrating to urban areas among rural households having members abroad.
JEL Classification Codes: F22, F24, C24, O15
The financial supports for the field survey was provided by Fuji Xerox Setsutaro Kobayashi Memorial Fund, Japan. The authors also acknowledge financial support from GRIPS’s Policy Research Center through the project entitled "International Remittances and Investment in Education in Nepal".

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