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The Intergenerational Effects of Economic Sanctions

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  • Safoura Moeeni

Abstract

While economic sanctions are successful in achieving political goals, they can hurt the civilian population. These negative effects could be even more detrimental and long lasting for future generations. This study estimates the effects of economic sanctions on children’s education by exploiting the United Nations sanctions imposed on Iran in 2006. Using the variation in the strength of sanctions across industries and difference-in-differences with synthetic control analyses, this study finds that the sanctions decreased children’s total years of schooling by 0.1 years and the probability of attending college by 4.8 percentage points. Moreover, households reduced education spending by 58 percent—particularly on school tuition. These effects are larger for children who were exposed to the sanctions for longer. The results imply that sanctions have a larger effect on the income of children than their parents. Therefore, ignoring the effects of sanctions on future generations significantly understates their total economic costs.

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  • Safoura Moeeni, 2022. "The Intergenerational Effects of Economic Sanctions," The World Bank Economic Review, World Bank, vol. 36(2), pages 269-304.
    • Handle: RePEc:oup:wbecrv:v:36:y:2022:i:2:p:269-304.
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    2. Veronika Yu. Zemzyulina & Natalya R. Kelchevskaya & Ilia M. Chernenko, 2023. "The Impact of Sustainable Development and Reliability on the Performance of Russian Enterprises in the Context of an Economic Fragmentation," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(4), pages 1056-1086.
    3. Moeeni, Safoura & Wei, Feng, 2022. "The labor market returns to unobserved skills: Evidence from a gender quota," CLEF Working Paper Series 53, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    4. Moeeni, Safoura & Tanaka, Atsuko, 2023. "The effects of labor market opportunities on education: The case of a female hiring ceiling in Iran," Journal of Public Economics, Elsevier, vol. 224(C).

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    More about this item

    Keywords

    education; parental investment; economic sanctions; intergenerational effects;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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