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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.

Suggested Citation

  • Vincent Law, 2011. "Is Reaction to Terrorist Attacks a Localised Phenomenon?," Crawford School Research Papers 1110, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:crwfrp:1110

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    References listed on IDEAS

    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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    More about this item


    labor discrimination; migration; labor supply; terrorist attacks;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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