The impact of remittances on the educational attainment of black South Africans
Thesis (MPhil Development Finance)--Stellenbosch University, 2015.
ENGLISH ABSTRACT: This assignment studies the impact of remittance receipts on the educational attainment of Black South African children. Using the second wave of the National Income Dynamic Study and applying the instrumental variable econometric approach, the determinants of the following outcomes are studied: children aged zero to six years enrolling in early childhood development facilities, and the highest grade completed by children aged 14 to 25 years. Contrary to the theory and related literature, we find that the receipt of remittances does not have a statistically significant impact on the probability of young children being enrolled in early childhood development facilities, nor does it have a statistically significant effect on the probability of children achieving any levels of primary, secondary and tertiary educational attainment. Another finding that was inconsistent with the theory is that parental education and wealth do not have a significant effect on the probability of zero to six year olds being enrolled in early childhood development facilities, although early childhood development programs are funded privately in South Africa. The findings have also shown that the factor of people residing on farms and in areas under tribal authority has mixed effects on the educational attainment of children. Children aged zero to six residing on farms and in areas under tribal authority have significantly lower probabilities of being enrolled in early childhood development facilities. On the other hand, older children (22 to 25 year olds) residing on farms and in areas under tribal authority have higher probabilities of completing secondary schooling and obtaining tertiary qualifications than their urban counterparts.
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