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The Intergenerational Effects of Economic Sanctions

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  • Moeeni,Safoura

Abstract

While economic sanctions are successful in achieving political goals, can hurt thecivilian 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 Nationssanctions imposed on Iran in 2006. Using the variation in the strength of sanctions across industries anddifference-in-differences with synthetic control analyses, this study finds that the sanctions decreased children’stotal 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 forchildren who were exposed longer to the sanctions. The results imply that sanctions have a larger effect on theincome of children than their parents. Therefore, ignoring the effects of sanctions on future generations significantlyunderstates their total economic costs.

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  • Moeeni,Safoura, 2021. "The Intergenerational Effects of Economic Sanctions," Policy Research Working Paper Series 9836, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9836
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    1. Moghaddasi Kelishomi, Ali & Nisticò, Roberto, 2022. "Employment effects of economic sanctions in Iran," World Development, Elsevier, vol. 151(C).
    2. 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.
    3. 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).
    4. 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.

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    More about this item

    Keywords

    Educational Sciences; Oil & Gas; International Trade and Trade Rules; Energy Demand; Energy and Mining; Energy and Environment;
    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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