cohorts of 1974-1979 who did not finish primary school at the time of the war had a completion rate of 81%. The survey also provides statistical information about the completion rates of secondary education or higher for two different cohorts, one that finished primary school during the war (1963-1969) and the other that did not complete primary school during the same time (1974-1979). The first cohort had a higher completion rate of 61%, while the second cohort had a lower completion rate of 49%.

We will exploit these significant variations in our identification strategy. Specifically, we conduct an event study along the lines of Jacobson et al. (1993) for the interest outcomes. i 1 + ∑13 i i 2 i kk where i are the outcome variables including educational attainment, social welfare, and working YY ii = αα + γγii kk≥−4,kk≠0 DD ii δδkk + XX iiαα + εε ii conditions of an individual i in governorate p at time t. The dummy variables, i , jointly ii represent the treatment event. In particular, we select the year 1968 as the treatment event because YY kk ii the children would be 12 years old in 1980. Those individuals born before 1968 were not affected DD by Islamic Republic of Iran–Iraq war, and the extent of the impact of the war would increase for those born after 1968 until 1980. We define i =1 if t - 1968 = k, and 0 otherwise, k=-4, -3, -2, - 1, 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13. And, kk is a set of dummy variables for each governorate. ii Xipt is a dummy variable for gender. All standard errors are clustered at the governorate level. DD ii γγ

# **4. Long-run impact of the Islamic Republic of Iran–Iraq war**

# **4.1 Long-run impact of the Islamic Republic of Iran–Iraq war on labor market outcomes**

Table 1 provides the impact of the Islamic Republic of Iran–Iraq war 1980-1988 on the social welfare of workers. This time, we estimate the long-term effect of the war on workers. We use different measures to reflect the social welfare of workers, they are a dummy variable of having social security, a dummy variable for having pension plan, a dummy variable for health care, a dummy variable for paid leave, a dummy variable for job permanence, and log of wage. The findings show that cohorts of 1970-1980, who were exposed to the war, have lower probability of having social security, the results are not statistically significant for cohorts of 1974 and 1975 (Column 1). Also, most of cohorts of 1970-1980 are less likely to have pension plan, health care, paid leave, and job permanence (Columns 2-5). Importantly, workers of cohorts of 1969-1981 who exposed to the war have lower wage. Those findings suggest that the Islamic Republic of Iran– Iraq war had long-term and negative effects on social welfare of workers who were exposed at ages 6-11 years.

**Table 1. Impact of Islamic Republic of Iran–Iraq war on Social welfare of workers**

||Dummy for<br>social security|Dummy for<br>pension plan|Dummy for<br>health care|Dummy for<br>paid leave|Dummy for job<br>permanence|Log of<br>wage|
|---|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|(6)|
|Year 1964|-0.014|-0.000|-0.030|0.017|0.020|0.117|
||(0.041)|(0.039)|(0.030)|(0.042)|(0.022)|(0.133)|
|Year 1965|<br>-0.008|<br>-0.002|<br>-0.012|<br>0.011|<br>-0.030|<br>-0.072|

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