 The impact of international sanctions on income mobility: Evidence from IranAli Reza Oryoie Review of Development Economics, 2024, vol. 28, issue 4, 1695-1717 Abstract: This article studies the impact of international economic sanctions on income mobility at the Macro level. A series of economic sanctions were imposed on Iran during 2008–2015 and lifted to some extent in 2015. Using some pseudo‐panel datasets, constructed based on 18 household surveys during 2001–2018, we investigate the impact of sanctions on four income mobility measures: directional income movement, positional movement, time dependence, and mobility as an equalizer of longer‐term incomes. The results show that in the sense of directional income mobility, the sanctions are followed by welfare losses for all income groups, with richer groups experiencing larger losses than poorer ones. The rich face income declines that are larger compared to those experienced by the poor, and this causes: first, richer (poorer) groups to face a higher probability of moving downward (upward) in relative terms, thus we see an increase in positional income mobility (and also time dependence) with the sanctions; and second, an increase in mobility in the sense of equalizer of longer‐term incomes. We get the opposite results with the removal of sanctions. Date: 2024 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:rdevec:v:28:y:2024:i:4:p:1695-1717 Ordering information: This journal article can be ordered from Access Statistics for this article Review of Development Economics is currently edited by E. Kwan Choi More articles in Review of Development Economics from Wiley Blackwell |
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