Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/234472 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
Working Paper Series No. 33
Publisher: 
University of Waterloo, Canadian Labour Economics Forum (CLEF), Waterloo
Abstract: 
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. I estimate 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, I find 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% - 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.
Subjects: 
Education
Parental investment
Economic sanctions
Intergenerational effects
JEL: 
I20
E24
F51
Document Type: 
Working Paper

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