Effect of remittances on child welfare in Ghana

Abstract

This thesis investigates the effect of migrant remittances on child welfare in Ghana. The specific objectives are to examine: (1) the effect of remittances and gender on child labour; (2) the effect of remittances on child welfare clinic child education in Ghana. Using the Ghana Living Standards Survey (GLSS) Round 6, the study employs the instrumental variable 2SLS approach in order to achieve the first and third objectives. This approach is adopted in order to address the endogeneity of remittances. To achieve the second objective, the study uses the Poisson regression model. The study finds evidence that irrespective of whoever is the head of the household, remittances income is inversely related to child labour. However, the negative effect is much higher for male-headed households than it is for female-headed households. Furthermore, remittances child welfare clinic attendance thereby improving child health. Finally, the result indicates that remittances have a positive and significant influence on child education. Based on these findings, it is recommended that the Bank of Ghana should facilitate the establishment of more mobile money transfer outlets and reduce the transactions cost of remittance so as to enable households improve child welfare. Furthermore, the government should provide incentives to attract negative impact on child labour.