CREB - Center for Research in Economics and Business

Effects of Migration and Remittances on School Enrolment in Punjab
Rabia Arif

Education is essential for the socio-economic development of a country. It plays a significant role in enhancing human capital and boosts economic growth through increased knowledge, skills and innovations. United Nation’s Statistics reveal that hardly 63% of Pakistani children finish primary school education. Only 68% of Pakistani boys and 72% of Pakistani girls reach grade 5. Pakistan intends to increase this figure by 10% by 2015 and subsequently by 15% more by 2020. One of the major reasons why developing countries suffer from such a low level of these private investments is due to liquidity constraints which can be the result of incomplete or missing credit markets. Therefore, remittances from migrant household members can play a crucial role in loosening constraints if not eliminating them completely. The aim of this MPHIL thesis is to examine the relationship between the migration and schooling enrollment in Pakistan. This would help in establishing whether migration promotes human development in Pakistan through the stream of cash flows generated via remittances being sent back home or is it only the consumption of goods and services together with leisure consumption of households that remittances are spent on.