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Gendered effects of sanctions on manufacturing employment: Evidence from Iran

Firat Demir and Saleh S. Tabrizy

Review of Development Economics, 2022, vol. 26, issue 4, 2040-2069

Abstract: International sanctions have significant economic effects with long‐lasting negative consequences for human development. However, academic research on the gendered effects of sanctions is scarce. In fact, most work on sanctions has been either gender neutral or gender blind. This article examines the labor market effects of economic and noneconomic sanctions, imposed by the United States and the United Nations, on male and female employment in manufacturing industries in Iran. The empirical analysis is based on four‐digit industry‐level employment data from 102 manufacturing industries between 1995 and 2014. Our main findings suggest that international sanctions have disproportionate effects on male and female employment. In particular, we find that sanctions hurt female employment significantly more than male employment. This effect is further compounded in industries that are more capital intensive, where labor compensation has a relatively low share in value added. Furthermore, in industries with relatively high reliance on imported inputs, female employment suffers more from sanctions.

Date: 2022
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https://doi.org/10.1111/rode.12917

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