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Is Reaction to Terrorist Attacks a Localised Phenomenon?

  • Vincent Law

    ()

    (The Australian National University (ANU) - Crawford School of Public Policy)

Research found that the terrorist attack of 9/11 was associated with a temporary decline in US Arab and Muslim men’s weekly earnings and real wages of around 9 to 11 per cent. This has been interpreted as an increase in discrimination against those groups following the attack. However, other evidence shows that in Sweden the terrorist attack did not change Middle East immigrants’ job-searching behavior because of increased discrimination from employers. A possible explanation is that, since 9/11 occurred in the US, the reaction against Arab and Muslim men was more severe there than elsewhere, even though nationals from 90 other countries were also killed. Against this background, the purpose of this paper is to examine the labor market experiences of UK-based Arab and Muslim immigrants. They could have been affected by either 9/11 (that killed 67 UK nationals) or the London bombings of 7th July 2005 (that killed 52 UK nationals), or both. Using Quarterly UK Labor Force Survey data, we explore the labor market outcomes of UK-based Arab and Muslim immigrants following both 9/11 and the London bombings. We estimate two difference-in-differences models — one for 9/11, and the other for the London Bombings and carry out the analysis separately for men and women.

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File URL: http://www.crawford.anu.edu.au/pdf/crwf_ssrn/crwfrp_1110.pdf
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Paper provided by Crawford School of Public Policy, The Australian National University in its series Crawford School Research Papers with number 1110.

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Length: 34 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:een:crwfrp:1110
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Web page: https://crawford.anu.edu.au/research/crwf_ssrn/
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  1. Neeraj Kaushal & Robert Kaestner & Cordelia Reimers, 2007. "Labor Market Effects of September 11th on Arab and Muslim Residents of the United States," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
  2. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
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