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.
Authors

CMPO, University of Bristol
Research Fellow University of Bristol
Stephanie is a Reader in Economics at the University of Bristol and an Endowed Professor of Health Economics at Erasmus University Rotterdam.
Report details
- DOI
- 10.1920/re.ifs.2024.0597
- Publisher
- Economics Inquiry
Suggested citation
Ratcliffe, A and von Hinke, S. (2014). The London Bombings and Racial Prejudice: Evidence from Housing and Labour Markets.. London: Economics Inquiry. Available at: https://ifs.org.uk/publications/london-bombings-and-racial-prejudice-evidence-housing-and-labour-markets (accessed: 17 February 2025).
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