International remittances and child welfare: A case study on Cali Colombia

Abstract

International remittances can increase the income of recipient households, and thus reduce their budget constraints. As such, they may enhance consumption and investment opportunities for family members that remain in the country of origin. This document analyzes the impact of international remittances on child labor and school attendance for children aged between 12 and 18 in Santiago de Cali, Colombia. Using a Propensity Score Matching (PSM) strategy, we find that children in remittance-receiving households are less likely to engage in market work, but no evidence that international remittances may influence school attendance. The results in this document emphasize the importance of remittance income to improve the welfare of children left behind, reducing their exposure to market work, which is one of the targets of the Sustainability and Development Goals.