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Work Under Attack: Terrorism and Local Labor Markets

Author

Listed:
  • Olayinka Oyekola

    (Department of Economics, University of Exeter)

Abstract

How does terrorism affect labor markets in developing countries? We combine georeferenced data on terrorist incidents with nationally representative employment data from Nigeria to examine this question. Exploiting within-location variation in exposure to terrorist attacks over time, we show that terrorism reduces employment. A one standard deviation increase in exposure lowers the probability of employment by 0.7 percentage points, or roughly 1 percent of average employment, with substantially larger effects for women. Beyond reducing employment, terrorism shifts workers away from regular and cash-paying jobs and lowers employment in sales, services, and unskilled manual occupations. The findings identify labor market disruption as an important economic cost of insecurity in developing countries.

Suggested Citation

  • Olayinka Oyekola, 2026. "Work Under Attack: Terrorism and Local Labor Markets," Discussion Papers 2607, University of Exeter, Department of Economics.
    • Handle: RePEc:exe:wpaper:2607
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    File URL: https://exetereconomics.github.io/RePEc/dpapers/DP2607.pdf
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    More about this item

    Keywords

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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