In this study, we examine differential fertility behavior of recipient and non-recipient households
in the developing countries with respect to international remittances. Using a representative
survey of Pakistani households, we find that the incidence of remittances lowers the probability
of women of childbearing age to be pregnant at a given time. Fertility declines by 26 percent
among recipient households. This may owe to a change in the children quality - quantity tradeoff
equation occurring as a result of an increase in the household's non-labor income. A higher
standard of living and better savings prospects due to foreign remittances may allow the recipient
households to spend more on the education and health of the existing children and reduce their
role as the household's future breadwinners.