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The London Bombings and Racial Prejudice: Evidence from Housing and Labour Markets

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Author Info

  • Anita Ratcliffe

    ()
    (Department of Economics, The University of Sheffield)

  • Stephanie von Hinke Kessler Scholder

    ()
    (University of York)

Abstract

This paper investigates the impact of the London bombings on attitudes towards ethnic minorities, examining outcomes in housing and labour markets across London boroughs. We use a difference-in-differences approach, specifying `treated' boroughs as those with the highest concentration of Asian residents. Our results indicate that house prices in treated boroughs fell by approximately 2.3% in the two years after the bombings relative to other boroughs, with sales declining by approximately 5.7%. Furthermore, we present evidence of a rise in the unemployment rate in treated compared to control boroughs, as well as a rise in racial segregation. These results are robust to several `falsification' checks with respect to the definition and timing of treatment.

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File URL: http://www.shef.ac.uk/economics/research/serps/articles/2013_013.html
File Function: First version, 2013
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Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2013013.

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Length: 26 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:shf:wpaper:2013013

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Keywords: terrorism; racial prejudice; difference-in-differences;

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