The London Bombings and Racial Prejudice: Evidence from Housing and Labour Markets

Anita Ratcliffe and Stephanie von Hinke

No 2013013, Working Papers from The University of Sheffield, Department of Economics

Abstract: This paper investigates the impact of the London bombings on attitudes towards ethnic minorities, examining outcomes in housing and labour markets across London boroughs. We use a difference-in-differences approach, specifying `treated' boroughs as those with the highest concentration of Asian residents. Our results indicate that house prices in treated boroughs fell by approximately 2.3% in the two years after the bombings relative to other boroughs, with sales declining by approximately 5.7%. Furthermore, we present evidence of a rise in the unemployment rate in treated compared to control boroughs, as well as a rise in racial segregation. These results are robust to several `falsification' checks with respect to the definition and timing of treatment.

Keywords: terrorism; racial prejudice; difference-in-differences (search for similar items in EconPapers)
JEL-codes: J15 J71 R21 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2013
New Economics Papers: this item is included in nep-dem and nep-ure
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Citations: View citations in EconPapers (1)

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http://www.shef.ac.uk/economics/research/serps/articles/2013_013.html First version, 2013 (application/pdf)

Related works:
Journal Article: THE LONDON BOMBINGS AND RACIAL PREJUDICE: EVIDENCE FROM THE HOUSING AND LABOR MARKET (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2013013

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