enrollment rate of children at high school dropout age (16 years old) decreased by 4.3 percentage points. Lack of access to financial resources for post-secondary education prevents marginal students from making such investments (Bound and Turner (2007); Zimmerman (2014)). Consequently, some students may perceive a reduced benefit from a high school degree if they are unable to access post-secondary education. As Panel B shows, this effect is larger for girls. Moreover, the economic sanctions decrease the probability of attending college at age 18 by 15 percentage points, which is consistent with earlier results in section 5. Panel C presents estimates of the effects by exposure duration (measured by age at 2007). As Panel C shows, the negative effects on high school and college enrollemnt at crucial ages (ages 15 and 18) are bigger when children reach these ages at a later stage of the sanctions period. For example, children who reached age 16 in 2013 are more likely to dropout from high school than do children who reached age 16 in 2007.

Table 7: Heterogeneous Effect on Enrollment Rates by crucial ages

|||Age||
|---|---|---|---|
||6|16|18 (HSG)|
|Sample: Whole sample||||
|A. No diferences across gender||||
|Treat _×_ Post2007|0.041|-0.043<sup>_∗∗_</sup>|-0.154<sup>_∗∗_</sup>|
||(0.032)|(0.023)|(0.062)|
|R-squared|0.279|0.075|0.157|
|B. Allowing diferences across gender||||
|Female _×_ Treat _×_ Post2007|0.043|-0.122<sup>_∗∗∗_</sup>|-0.072|
||(0.005)|(0.036)|(0.104)|
|Mean Control|91%|92%|47%|
|R-squared|0.029|0.076|0.169|
|Observations|1,019|3,011|1,437|
|Sample: Early & Fully Exposed: Age in 2007|1-15|10-20|12-24|
|C. Allowing diferences in exposure||||
|Age at 2007 _×_ Treat|-0.002|0.009<sup>_∗∗_</sup>|0.018<sup>_∗∗_</sup>|
||(0.004)|(0.004)|(0.009)|
|Treat|-0.001|-0.133<sup>_∗_</sup>|-0.294<sup>_∗_</sup>|
||(0.038)|(0.070)|(0.171)|
|R-squared|0.393|0.098|0.166|
|Observations|735|1,395|969|

_Source_ : Iranian Households Income and Expenditures Surveys (HIES). Note: The table presents estimates of the average and gender differences effects of the sanctions on enrollment rates by crucial ages (estimated coefficients of _T reat × P ost_ 2007 ( _γ_ in equation (1)) in panel A, and estimated coefficients of _F emale × T reat × P ost_ 2007 ( _γ_ 1 in equation (2)) in panel B): enrollment in the first grade at age 6, high school at age 16 (high-school dropout age), and matriculation at a university at age 18 (among high school graduates (HSG)). The time period is 1995â2013. Heteroskedasticity-consistent standard errors accounting for clustering at the province and industry level in parentheses. Treated: oil and gas, energy supply industries. Synthetic control: information (0.148), education (0.169), and health (0.683) industries.<sup>_∗_</sup> Significant at 10% level;<sup>_∗∗_</sup> significant at 5% level;<sup>_∗∗∗_</sup> significant at 1% level. .

# **8 Conclusion**

In this paper, I analyze the negative externalities of economic sanctions on the next generation through changes in children’s education. Recent evidence has indicated that economic sanctions pose significantly adverse impacts on the current generation. While the short term effects of economic sanctions on the current generation are well explored, little is known about their long lasting effects on the next generation. This paper seeks to fill the gap by examining the effects of the 2006 UN economic sanctions against Iran on children’s education. These targeted 32