Channeling Remittances to Education: A Field Experiment Among Migrants from El Salvador
We implement a randomized experiment offering Salvadoran migrants matching funds for educational remittances, which are channeled directly to a beneficiary student in El Salvador chosen by the migrant. The matches lead to increased educational expenditures, higher private school attendance, and lower labor supply of youths in El Salvador households connected to migrant study participants. We find substantial "crowd-in" of educational investments: for each $1 received by beneficiaries, educational expenditures increase by $3.72. We find no shifting of expenditures away from other students, and no effect on remittances.
This paper was previously circulated under the title "Subsidizing Remittances for Education." Ambler: Markets, Trade, and Institutions Division, International Food Policy Research Institute (firstname.lastname@example.org). Aycinena: Facultad de Ciencias Económicas, Universidad Francisco Marroquin (email@example.com). Yang (corresponding author): Department of Economics and Gerald R. Ford School of Public Policy, University of Michigan, NBER, and BREAD (firstname.lastname@example.org). Jessica Snyder and Kevin Carney, our Innovations for Poverty Action project associates, deserve special thanks for superb work on all aspects of project implementation and data management. We greatly appreciate the support and feedback of Luis Alejos Marroquín, Oriana Bandiera, Ana de Bardi, Paul Dwyer, Daniel Gottschalk, Patricia Guinea de Solorzano, Gabriela Inchauste, Celia Medrano, Moy Pascual de Velasco, Enilson Solano, Eugenia Suay de Castrillo, and seminar participants at Columbia University, the Inter-American Development Bank, Queens College, Central Michigan University, NEUDC 2013, and the NBER Education Program meeting at the Chicago Fed (November 2013). This project would not have been possible without the collaboration of Fundación Empresarial para el Desarrollo Educativo (FEPADE), Viamericas Corporation, and the Salvadoran consulates in Woodbridge, VA and Washington, DC. This study was funded by the Inter-American Development Bank (contract C0016-11) and by the University of Michigan's Population Studies Center. Ambler acknowledges support from an NICHD training grant to the Population Studies Center at the University of Michigan (T32 HD007339). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Kate Ambler & Diego Aycinena & Dean Yang, 2015. "Channeling Remittances to Education: A Field Experiment among Migrants from El Salvador," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 207-32, April. citation courtesy of