This study examines the impact of remittances on school enrollment and the
level of education attained among children aged 4–15 years in Pakistan. It uses a
nationally representative survey, the Pakistan Social and Living Standards
Measurement Survey for 2010/11. The migrant network variable at the village level
interacting with the number of adults at the household level is used as an instrument
for remittances. The results of the IV probit model show that children from
remittance-receiving households are more likely to enroll in school. The marginal
impact of remittances on school enrollment is larger for girls and for rural
households. Hence, remittances help reduce regional and gender disparities in child
school enrollment in Pakistan. The IV censored ordered probit model is used to
investigate the impact of remittances on children’s grade attainment. The estimated
impact is negative and significant, except for urban children, lowering the
probability that a child will move to a higher grade.