Remittances, Migration and Human Capital Development in Low In-come Economies
Abstract
Nigeria receives about $21 billion in remittances each year, even as the country loses skilled workers to migration. This paper tests how money sent home shapes human-capital choices in low-income settings. We study Nigerian households and track education and health spending as key outcomes. We also check thresholds by transfer size and regularity, and how effects differ by who migrated and why. Using household survey data and standard econometric models, we find that steady, higher-value inflows raise school attendance and out-of-pocket health spending. The gains are strongest in liquidity-constrained homes. Results point to remittances as a risk-sharing and investment tool, not just income support. Policy should lower remittance costs and link inflows to training and care programmes.
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