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Dean Yang photo

Channeling Remittances Toward Human Capital Accumulation

a PSC Research Project

Investigator:   Dean Yang

The purpose of this project is to answer the previous question by designing and implementing a randomized trial in which instruments meant to increase the share of remittances spent on human capital accumulation are tested. In particular, it will focus on El Salvador, a country which is representative of the reality of the region (it accounted for 25% of the transfers sent by migrants in 2009) and from which valuable results could be obtained for the benefit of other countries in the area. In this field experiment, migrants in the US would be offered greater control over spending decisions of their families by enabling them to directly pay for the health/education services of family members in their home countries. Financial and educational institutions in the US and El Salvador will be identified as partners on this initiative. Evaluation of the impact of the experiment will require tracking of administrative data from the partner institutions, as well as baseline and follow-up surveys on migrant study participants in the US and their corresponding families in El Salvador. These surveys would allow the study to assess impacts on a variety of migrant and recipient household variables.

Funding Period: 03/01/2011 to 06/30/2013

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