Internal versus International Migration

This paper focuses on the effects of domestic and international remittances on child labor and schooling. Using data from the 1992–1993 and 1997–1998 Vietnam Living Standards Surveys, we investigate school attendance and child labor in remittance recipient and non-recipient households. The results of our binomial logit and two-sided censored regression panel analysis indicate that remittances increase schooling and reduce child labor. Although international remittances are found to have a stronger beneficial impact than domestic remittances in the cross-section, the panel analysis, taking account of fixed effects, reverses this result, showing that the only significant impact stems from domestic remittances.