Remittances in Ukraine - consumption patterns and education

The primary aim of the thesis is to assess whether remittances spur households' investments in education in Ukraine. Moreover, consumption patterns of households in regions with the highest/lowest share of remittances of their total income are described. Furthermore, the thesis deals with migrants' main motivations to remit and which channels are commonly used. The methodology combines quantitative research dealing with data observation and qualitative research consisting of five in-depth interviews with either remittances senders or recipients. The findings indicate that remittances spur households' investments into education in a way they compensate for lower income. There are no significant differences in consumption patterns of households in regions receiving the highest/lowest remittances as a share of their total income. It supports the fact that remittances improve the standard of living in regions receiving lower average income. Among the main motivations to remit are altruism, repayment of costs to parents, and maintenance of assets owned. Money is commonly personally carried in cash across borders. Moreover, general distrust in banking services is recognized. These findings may serve to design accurate policies to harness the full potential of remittances. Policies to encourage sending remittances via official channels and opportunities for productive investments of remittances are highly recommended.