Migrants’ international transfers and educational expenditure

Empirical evidence from Albania


  • Cristina Cattaneo

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    • The author thanks Barry Reilly, Rodolfo Helg, Matteo Manera, Julie Litchfield, Stephen Drinkwater, the participants at the FEEM lunch seminar and at the 16th National Scientific Conference, Università di Parma. The author is also grateful to an anonymous referee for useful comments and suggestions on an earlier version of this article. The usual disclaimers apply.


The primary objective of this article is to cast some light upon the relationship between education expenditure and the volume of remittances sent to Albania from abroad by international migrants. To assess the existence of an education enhancing effect of remittances, an Engel curve framework is used. In addition, quintile regression analysis is employed to investigate whether migrants’ remittances have a differentiated effect on various quantiles of the conditional distribution of education consumption. The two main empirical findings are that household income has a positive and well-determined impact on education expenditure, whereas international transfers do not influence education spending.