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Citation Information

Type Working Paper
Title Informal institutions and intergenerational contracts: Evidence from schooling and remittances in rural Tanzania
Publication (Day/Month/Year) 2008
URL http://www.edi-global.com/docs/khds/KHDS2paper_LassenLilleor.pdf
This paper carries out a theoretical and empirical investigation of the role of informal institutions in facilitating intergenerational contracts governing investments in schooling and payments of pensions in the form of remittances. We show, using detailed household-level data from rural Tanzania, that informal institutions of social control, rooted in tribal as liations, determine both the household?s investment in schooling and the probability that it receives remittances from migrants. This is consistent with a framework in which households?expected returns in the form of remittances, which is determined partly by the prospects of social control over migrants, in?uence current investments in schooling.

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