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Are Grandparents Blessings in Disguise? Evidence from Unconditional Cash Transfer and Educational Investment in Nepal

Bibliographic Data

ID24020113
AuthorsNirmal Kumar Raut (0000-0002-4234-4739, Tribhuvan University, corresponding author), Ryuichi Tanaka (0009-0006-7051-1035, The University of Tokyo), Neesha Thapa (Tribhuvan University)
Year2026
Pages1-25
Publication date2026-08-05
Open AccessYes
TypeARTICLE
VenueThe Journal of Development Studies (JOURNAL)
Journal identifiersISSN: 0022-0388 • E-ISSN: 1743-9140
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/00220388.2026.2708700
OpenAlexW7172541758
LanguageEN
References cited43

Elderly allowances for grandparents can ease household liquidity constraints in developing countries, potentially boosting investment in human capital. This study uses child-level panel data from rural-to-urban transitioning households in Nepal to examine whether such allowances enhance educational investment, with a focus on gender. It examines whether grandparents’ receipt of the allowance, particularly grandmothers’, increases household spending on girls’ education. The findings from the difference-in-difference methods reveal that the elderly allowance increases investment in girls’ education, especially when grandmothers receive it and co-reside with the family. Spending also increases for boys in private schools and for girls in both public and private schools. Notably, spending on girls in public schools more than doubled than in private schools. The increase is strongest at the primary level, with smaller effects at the secondary level. Supplementary evidence also suggests improved short-term attendance for girls. Overall, the study highlights the important role of elderly allowances in encouraging educational investment, particularly for girls, and reducing gender disparities in education spending in developing countries.

Allowance (engineering) · Developing country · Educational attainment · Grandparent · Human capital · Investment (military) · Market liquidity · Public investment · Receipt · Financial Literacy, Pension, Retirement Analysis · Intergenerational Family Dynamics and Caregiving · Poverty, Education, and Child Welfare

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