Sanction intensity and labor force participation

Purpose – This study examines the impact of sanction intensity on labor force participation rate in 30 sanctioned countries from 1990 to 2019. Design/methodology/approach – We apply different dynamic threshold panel models using the generalized method of moments (GMM) estimation. Findings – Our findings reveal a non-linear relationship between sanction intensity and labor force participation rate. Milder sanctions are associated with higher labor force participation rate, while intense sanctions lead to reduced participation, largely due to the damaging effects of sanctions on domestic economies. Originality/value – While several studies have examined the impact of sanctions on various economic, social and political factors, only a few have specifically investigated the role of sanctions on labor force participation across countries and over time.