Effects of Foreign Remittances on Children’s Education Expenditure: Evidence from District Charsadda, Pakistan

Abstract

Foreign remittances have emerged as a critical driver of household well-being in developing economies, especially in countries like Pakistan, where millions of families rely on income sent by migrant workers. This study examines the effects of foreign remittances on household expenditure on children’s education in District Charsadda, Khyber Pakhtunkhwa. Using a household survey of 81 emigrant-receiving families, the research employs descriptive statistics and multiple linear regression to analyze how remittances, alongside household characteristics, shape investment in education. Results indicate that remittances significantly and positively influence children’s education expenditure, while education of household heads and number of emigrants further enhance spending capacity. Conversely, larger numbers of dependent members and school-going children reduce per-child allocations. The findings underscore the role of remittances in alleviating financial constraints, while also highlighting equity challenges for large families. Policy recommendations include improving remittance transfer mechanisms, encouraging productive use of remittances, and providing support for households with many dependents to ensure equitable access to education.