This study investigates the causal impact of work-related migration by parents on left
behind children’s education and investment in schooling. To isolate the direct impact
of parental absence, we estimate the effects of parental migration and remittances separately.
Using data from the third round of the Nepal Living Standard Survey and
applying a two-step process to address self-selection into the migration statuses and
correct for endogeneity into remittances, we find negative effect of parental absence
and positive effect of remittances on education of children left behind. To further explore
the heterogeneous impact of parental migration, we extend our analysis allowing
heterogeneity by educational status of mother. We find that the children of educated
mothers bear relatively less burden from parental migration. Furthermore, we find some
evidence for heterogeneous effects of parental migration by child’s gender and age.