The Impact of Remittances on Children’s Education in Bangladesh

Abstract

Inward remittance is one of the major sources of foreign income for Bangladesh and its economic significance at both macro and household levels is evident in the existing literature. This study iassesses the impact of remittances on school enrolment of children in Bangladesh by utilising cross-sectional household-level data obtained from the Household Income and Expenditure Survey 2016. Employing a probit regression method for the analysis, our findings reveal a positive relationship between school enrolment of children and remittances as expected. Furthermore, the education levels of parents are found to have a significant positive impact on the school enrolment of children. Our results also suggest that households with two or three children are more likely to enrol their children in schools as opposed to households with just one child and those with four or more children. However, household location (urban) and gender of children (male) exhibit a negative impact on enrolment. This study suggests that along with the current incentives provided to migrant workers sending remittances, the government can also implement modified or additional incentives to enhance the enrolment of children from remittance-receiving families. Also, to address the issues of lower enrolment among children from urban areas, male children and households with just one child, policymakers should develop new intervention programmes while sensitising the public on the benefits of acquiring education.