The impact of 9/11 on hours of work and labour force participation in the US

Julie L. Hotchkiss and Olga Pavlova

Applied Economics Letters, 2009, vol. 16, issue 10, pages 999-1003

Abstract: The purpose of this article is to use observed changes in hours of work and labour force participation to draw inferences regarding behavioural responses to the 9/11 terrorist attacks in the US. Using the Current Population Survey and controlling for differences in demographics, labour market conditions and a time-invariant unobserved individual fixed effect, we determine that for most sub-samples there was no change in labour force participation or in hours of work after 9/11 relative to before. Exceptions were women, who increased their labour force participation, and workers living in the proximity of one of the 9/11 events, who increased their hours of work. These results are consistent with a precautionary increase in labour supply during an uncertain time, and with others' documentation of women responding more dramatically to external stressors.

Date: 2009

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