The London Bombings and Racial Prejudice: Evidence from the Housing and Labor Market

18 Pages Posted: 21 Nov 2014

See all articles by Anita Ratcliffe

Anita Ratcliffe

University of Sheffield - Department of Economics

Stephanie von Hinke Kessler Scholder

University of Bristol

Date Written: January 2015

Abstract

This paper investigates the impact of the London bombings on attitudes toward ethnic minorities, examining outcomes in housing and labor 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% in the 2 years after the bombings relative to other boroughs, with sales declining by almost 6%. 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

JEL Classification: J15, J71, R21

Suggested Citation

Ratcliffe, Anita and von Hinke Kessler Scholder, Stephanie, The London Bombings and Racial Prejudice: Evidence from the Housing and Labor Market (January 2015). Economic Inquiry, Vol. 53, Issue 1, pp. 276-293, 2015. Available at SSRN: https://ssrn.com/abstract=2528854 or http://dx.doi.org/10.1111/ecin.12144

Anita Ratcliffe (Contact Author)

University of Sheffield - Department of Economics ( email )

9 Mappin Street
Sheffield, S1 4DT
UNITED KINGDOM

Stephanie Von Hinke Kessler Scholder

University of Bristol ( email )

8 Woodland Road
Bristol, BS8 1TN
United Kingdom

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