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The Impact of 9/11 and the London Bombings on the Employment and Earnings of U.K. Muslims

  • Faisal Rabby
  • William M. Rodgers
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    Using a difference-in-differences framework, this paper estimates the impact that Britain's July 2005 bombings had on the labor market outcomes of UK residents who are either Muslim by religious affiliation or whose nativity profiles are similar to the terrorists. We find a 10 percentage point decrease in the employment of very young Muslim men relative to non-Muslim immigrants after the London bombings. The drop in employment is accompanied by consistent declines in real earnings and hours worked. A weak association between the 9-11 terrorist attacks and a drop in the employment of very young male immigrants from Muslim-majority countries is also found. The terrorist events had little impact on the employment of older men.

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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.354163.de/diw_econsec0024.pdf
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    Paper provided by DIW Berlin, German Institute for Economic Research in its series Economics of Security Working Paper Series with number 24.

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    Length: 31 p.
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:diw:diweos:diweos24
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