Determinants of Remittance Inflows and Their Effects on Children’s School Choice and Health: Cross-Sectional Evidence from Sylhet

Abstract

Remittances can affect child well-being in the country of origin by relaxing the household financial constraints. In  Bangladesh, a significant share of international remittances originates from Sylhet, a district in the eastern region where foreign remittances constitute a major source of household income. This study aims to examine the socio-economic determinants of remittance inflows and the implications for children’s education and healthcare in Sylhet.  It draws on household-level primary data collected through structured interviews from eight upazilas of Sylhet. The survey was conducted between April and June 2025. Data were collected from 340 households using a multi-stage random sampling method. We used ordinal logistic regression to identify factors influencing the inflow of remittances to families in the home country, while multinomial and ordered logit models were used to examine the effects of remittances on children’s school choice, education expenditure, and healthcare expenditure. The findings indicate that the age and education level of remitters significantly influence remittance inflows. Remitters aged 30-40 years are more likely to send higher amounts than those aged 50 years or older, whereas lower educational attainment is associated with lower remittance levels. Additionally, higher remittance inflows significantly increase the likelihood of private school attendance and higher expenditure on children’s healthcare. Madrasa (Islamic religious school) enrolment is associated with smaller household size, lower remitter education, and shorter migration duration. The findings provide policy-relevant insights into how remittance income influences human capital investment in migrant-sending regions of Bangladesh and similar contexts.