The impact of 9/11 terrorists' attacks on labor market outcomes of Muslims in Germany

Presenter: Sumit Deole, MLU Halle-Wittenberg

This paper applies difference-in-differences regressions to explore the role of 9/11 terrorists’ attacks in the US for labor market outcomes of Muslim males in Germany. Using data from the German Socio-Economic Panel (SOEP), our results suggest that wage earner (salaried) Muslims experienced a significant decline in hourly wages due to 9/11 terrorists’ attacks while earnings of self-employed Muslims were unaffected. The wage decline was particularly pronounced among low educated and low skilled workers. Furthermore, we find that 9/11 terrorists’ attacks substantially reduced the employment probability for Muslims. In particular, high-educated Muslim males had a higher probability of unemployment than low-educated ones.