Effect of Remittances on Healthcare of Left-Behind Parents

This study investigates the impact of remittances on the health status of parents left behind in their communities by their children. While the existing literature explores the effects of remittances through health expenditure, this study contributes to the literature by analysing the causal effects of remittances on the level of access to healthcare services and health outcomes. Using three waves of the Bangladesh Integrated Household Survey coupled with a fixed-effects instrumental variable approach, we find that demand for healthcare declines with rising remittances and that remittances decrease acute illness, hinting that remittances may improve preventative health measures. Finally, the findings suggest to policymakers the importance of greater investments in the public health system to make it accessible for all, especially for non-remittance-receiving households.