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The London Bombings And Racial Prejudice: Evidence From The Housing And Labor Market

Author

Listed:
  • Anita Ratcliffe
  • Stephanie von Hinke Kessler Scholder

Abstract

This paper investigates the impact of the London bombings on attitudes toward ethnic minorities, examining outcomes in housing and labor 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% in the 2 years after the bombings relative to other boroughs, with sales declining by almost 6%. 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. (JEL J15, J71, R21)

Suggested Citation

  • Anita Ratcliffe & Stephanie von Hinke Kessler Scholder, 2015. "The London Bombings And Racial Prejudice: Evidence From The Housing And Labor Market," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 276-293, January.
    • Handle: RePEc:bla:ecinqu:v:53:y:2015:i:1:p:276-293
    DOI: 10.1111/ecin.12144
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    Cited by:

    1. Sander WAGNER & Ivaylo D. PETEV, 2019. "The Economic Penalty of Terrorism: Increase in Discrimination Against Arabs and Muslims after Paris Attacks," Working Papers 2019-22, Center for Research in Economics and Statistics.
    2. McConnell, Brendon & Tan, Kegon Teng Kok & Zapryanova, Mariyana, 2024. "How do parole boards respond to large, societal shocks? Evidence from the 9/11 terrorist attacks," Journal of Public Economics, Elsevier, vol. 238(C).
    3. Paresh Kumar Narayan & Seema Narayan & Siroos Khademalomoom & Dinh Hoang Bach Phan, 2018. "Do Terrorist Attacks Impact Exchange Rate Behavior? New International Evidence," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 547-561, January.
    4. Lepage, Louis-Pierre, 2023. "Discrimination and sorting in the real estate market: Evidence from terrorist attacks and mosques," European Economic Review, Elsevier, vol. 153(C).
    5. Nowak, Adam & Sayago-Gomez, Juan, 2018. "Homeowner preferences after September 11th, a microdata approach," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 330-351.
    6. Tripathi, Ishita, 2022. "Are terrorists responsible for anti-immigrant sentiments? Evidence from Europe," Economic Modelling, Elsevier, vol. 115(C).
    7. Marco Giani & Luca Paolo Merlino, 2021. "Terrorist attacks and minority perceived discrimination," ULB Institutional Repository 2013/351080, ULB -- Universite Libre de Bruxelles.
    8. Arne Risa Hole & Anita Ratcliffe, 2020. "The Impact of the London Bombings on the Well‐Being of Adolescent Muslims," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(4), pages 1606-1639, October.
    9. van Duijn, Mark & Rouwendal, Jan & Boersema, Richard, 2016. "Redevelopment of industrial heritage: Insights into external effects on house prices," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 91-107.
    10. Nils Verheuvel & Joost Witteman & Marilou Vlaanderen, 2023. "Synthetic Control Method for Dutch Policy Evaluation," De Economist, Springer, vol. 171(1), pages 51-83, March.
    11. Abel Brodeur & Hasin Yousaf, 2025. "On the Economic Consequences of Mass Shootings," The Review of Economics and Statistics, MIT Press, vol. 107(1), pages 109-124, January.
    12. Brodeur, Abel & Wright, Taylor, 2019. "Terrorism, immigration and asylum approval," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 119-131.
    13. Arne Risa Hole & Anita Ratcliffe, 2015. "The impact of the London bombings on the wellbeing of young Muslims," Working Papers 2015002, The University of Sheffield, Department of Economics.
    14. Muñoz-Morales, Juan & Singh, Ruchi, 2023. "Do school shootings erode property values?," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    15. Lei Zhang & Tammy Leonard, 2021. "External validity of hedonic price estimates: Heterogeneity in the price discount associated with having Black and Hispanic neighbors," Journal of Regional Science, Wiley Blackwell, vol. 61(1), pages 62-85, January.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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