Economic Sanctions and the Material Well-being of Iranian Older Adults: Do Pensions Make a Difference?

Abstract

Economic sanctions have inflicted various economic difficulties on Iranian families. The extent to which these sanctions-induced calamities have affected Iranian older adults’ material well-being remains unknown. Meanwhile, inadequate institutional support for the disadvantaged older population may worsen their precarious economic well-being. We use household-level surveys and quantile regression analysis to explore changes in Iranian older persons’ material well-being during the sanctions era. We also examine whether Iran’s pension system has alleviated the adverse effects of economic sanctions. Our investigation indicates that older adults’ material well-being decreases during sanctions. However, those without pension coverage are economically more vulnerable compared with pensioners. Among the non-pensioners, low-income and low-consumption ones are susceptible to relatively more considerable material well-being losses. To protect these vulnerable groups, policymakers should implement appropriate policy interventions, such as expansions in non-contributory anti-poverty schemes.