DescriptionTheories of both statistical and prejudiced discrimination predict adverse effects of terrorist events on workers who are demographically similar to terrorists. Using a difference-in-differences framework, this paper assesses the impact of the 9/11 attacks in the US and of the July 2005 bombings in Britain.
In the US, the outcomes worsened for those with nativity profiles closer to the terrorists'. The author finds a relative decrease in employment of very young (ages 16 to 25) target-group men associated with 9/11 in the US. A similar decrease in employment of these very young "Muslims" living in the UK is also found after 9/11 and again after the bombings in London in July 2005.