Remittances from international sources form an important part of the typical Nepalese households income. We analyze the effects of household international remittance and non-remittance income on educational achievement and the amount of child labor using Heckman's two-step analysis. For the analysis of educational achievement, the ratio of years of schooling to age is the independent regression variable, and a dummy variable representing whether or not the child has attended school at all is used as the select variable. For the analysis of child labor, the number off hours spent working in the labor force is the regression independent variable and a dummy variable representing whether or not the child has worked in the previous year is the select variable. It is determined that remittance income from international sources positively contributes to child welfare, but much less so than the same amount of income from other sources. Several socioeconomic variables, such as caste and the child's gender, are also analyzed, and in many cases found to have significant effects.'
Milligan, Michael and Alok Bohara. "The Effect of Remittances on Child Labor and Child Education in Nepal." (2007). http://digitalrepository.unm.edu/nsc_research/14