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 of on children’s education by exploiting United Nations imposed Iran 2006. Using variation strength across industries difference-in-differences with synthetic control analyses, this finds that decreased total years schooling 0.1 probability attending college 4.8 percentage points. Moreover, households reduced spending 58 percent— particularly school tuition. larger children who were exposed longer to sanctions. The results imply have a effect income than their parents. Therefore, ignoring generations significantly understates costs.