Migration can serve as an outlet for employment, higher earnings, and reduced income risk for households in developing countries. We use the 2004-2005 Human Development Profile of India survey to examine correlations between the receipt of remittances from internal migrants and human capital investment in rural areas. We employ a propensity score-matching approach to account for the selectivity of households into receiving remittances. We interpret the results conservatively due to the cross-sectional nature of the data. We find a positive correlation between remittances received from internal migrants and the schooling attendance of teens. The magnitude of the correlation is greater when focusing on low-caste households, and male schooling attendance in particular becomes more positive and statistically significant. Our findings provide a basis for establishing future research in the areas of migration and social protection in India.
International Food Policy Research Institute (IFPRI)