The Intergenerational Effects of Economic Sanctions

Safoura Moeeni

The World Bank Economic Review, 2022, vol. 36, issue 2, 269-304

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.

Keywords: education; parental investment; economic sanctions; intergenerational effects (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1093/wber/lhab024 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:wbecrv:v:36:y:2022:i:2:p:269-304.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The World Bank Economic Review is currently edited by Eric Edmonds and Nina Pavcnik

More articles in The World Bank Economic Review from World Bank Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().