The Intergenerational Effects of Economic Sanctions
While economic sanctions are successful in achieving political goals, 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 sanc...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/150531636051396237/The-Intergenerational-Effects-of-Economic-Sanctions http://hdl.handle.net/10986/36548 |
| Summary: | While economic sanctions are
successful in achieving political goals, 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 longer to the sanctions. 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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