Financing Student Migration: the Commitment Problem
Oct 13, 2014: If an outside helper finances a student to study abroad, there are incentives for such students and their parents not to abide by prior agreements. This makes potential outside helpers excessively cautious about providing financial support. Students from credit-constrained families tend to pay the price and remain underfinanced. These are the findings of Romuald Méango, Ifo Institute, presented in Ifo Working Paper No. 187, whose research is based on a unique dataset from Cameroon.