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Labor Market Effects of September 11^th on Arab and Muslim Residents of the United States

We investigated whether the September 11, 2001 terrorists’ attacks had any effect on employment, earnings, and residential mobility of first- and second-generation Arab and Muslim men in the United States. We find that September 11^th did not significantly affect employment and hours of work of Arab and Muslim men, but was associated with a 9-11 percent decline in their real wage and weekly earnings, with some evidence that this decline was temporary. The adverse earnings effects were strongly linked to hate crime incidence. Estimates also suggest that the terrorists’ attacks reduced intrastate migration of Arab and Muslim men.