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Increasing the Development Impact of Migrant Remittances: A Field Experiment on Educational Finance by Migrant Workers-Supplement

a PSC Research Project

Investigator:   Dean Yang

Migrant remittances are one of the largest international financial flows to developing countries, but very little is known about how the development impact of these funds can be maximized. The hypothesis driving this research is that remittances may have greater long-run development impact when migrants sending these remittances are given more control and monitoring over how the funds are used by recipients.
This project seeks to: 1) provide overseas Filipino workers (OFWs) with more control over the use of remittances for educational finance through direct tuition payments and student performance monitoring, and 2) to evaluate the effects of such control on household wellbeing indicators. We expect this service to mitigate migrants? uncertainty over whether their remittances are being used as desired and thus to increase the fraction of recipient households? spending on education and possibly total amount remitted.
The project brings together academic, nonprofit, and for-profit institutions in an attempt to produce a financial innovation that is both beneficial to rural families with migrants and also sustainably profitable.

Funding Period: 02/17/2012 to 01/31/2014

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