September 11th as a Discriminatory Shock: Labor Market Estimates of the 9/11 Backlash

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2012
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Haverford College. Department of Economics
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Thesis
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Award
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eng
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Open Access
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Abstract
This paper utilizes a difference in difference framework to estimate the impact of September 11 on wages, hours worked, and probability of employment for individuals of Middle Eastern ancestry in the aftermath of the terrorist attacks. September 11th is associated with a 4-6% decrease in the wages of Middle Eastern individuals relative to whites, which corresponds to well-documented reports of a public opinion backlash. There is little evidence that September 11th had an impact of the probability of employment or hours worked per week of Middle Eastern individuals relative to whites. This paper contributes to the scarce existing literature by providing estimates of labor market discrimination for both women and men, and uses an innovative assignment technique on the basis of ancestry that allows for estimates including both immigrants and U.S. citizens.
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