The economic cost of harboring terrorism

Efraim Benmelech, Claude Berrebi, Esteban F. Klor

Research output: Contribution to journalArticle

17 Citations (Scopus)

Abstract

The literature on conflict and terrorism has paid little attention to the economic costs of terrorism for the perpetrators. This article aims to fill that gap by examining the economic costs of harboring suicide terror attacks. Using data covering the universe of Palestinian suicide terrorists during the second Palestinian uprising, combined with data from the Palestinian Labor Force Survey, the authors identify and quantify the impact of a successful attack on unemployment and wages. They find robust evidence that terror attacks have important economic costs. The results suggest that a successful attack causes an increase of 5.3 percent in unemployment, increases the likelihood that the district's average wages fall in the quarter following an attack by more than 20.0 percent, and reduces the number of Palestinians working in Israel by 6.7 percent relative to its mean. Importantly, these effects are persistent and last for at least six months after the attack.

Original languageEnglish (US)
Pages (from-to)331-353
Number of pages23
JournalJournal of Conflict Resolution
Volume54
Issue number2
DOIs
StatePublished - May 13 2010

Fingerprint

terrorism
costs
suicide
economics
unemployment
wage
labor statistics
Palestinian
Israel
district
cause
Economic cost
Terrorism
Attack
evidence
Palestinians
Wages
Suicide
Unemployment
Terror

Keywords

  • Economic costs
  • Harboring
  • Suicide terrorism

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Sociology and Political Science
  • Political Science and International Relations

Cite this

Benmelech, Efraim ; Berrebi, Claude ; Klor, Esteban F. / The economic cost of harboring terrorism. In: Journal of Conflict Resolution. 2010 ; Vol. 54, No. 2. pp. 331-353.
@article{8ca9cb64601641a1a9c65e7d1b90dbcd,
title = "The economic cost of harboring terrorism",
abstract = "The literature on conflict and terrorism has paid little attention to the economic costs of terrorism for the perpetrators. This article aims to fill that gap by examining the economic costs of harboring suicide terror attacks. Using data covering the universe of Palestinian suicide terrorists during the second Palestinian uprising, combined with data from the Palestinian Labor Force Survey, the authors identify and quantify the impact of a successful attack on unemployment and wages. They find robust evidence that terror attacks have important economic costs. The results suggest that a successful attack causes an increase of 5.3 percent in unemployment, increases the likelihood that the district's average wages fall in the quarter following an attack by more than 20.0 percent, and reduces the number of Palestinians working in Israel by 6.7 percent relative to its mean. Importantly, these effects are persistent and last for at least six months after the attack.",
keywords = "Economic costs, Harboring, Suicide terrorism",
author = "Efraim Benmelech and Claude Berrebi and Klor, {Esteban F.}",
year = "2010",
month = "5",
day = "13",
doi = "10.1177/0022002709355922",
language = "English (US)",
volume = "54",
pages = "331--353",
journal = "Journal of Conflict Resolution",
issn = "0022-0027",
publisher = "SAGE Publications Inc.",
number = "2",

}

The economic cost of harboring terrorism. / Benmelech, Efraim; Berrebi, Claude; Klor, Esteban F.

In: Journal of Conflict Resolution, Vol. 54, No. 2, 13.05.2010, p. 331-353.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The economic cost of harboring terrorism

AU - Benmelech, Efraim

AU - Berrebi, Claude

AU - Klor, Esteban F.

PY - 2010/5/13

Y1 - 2010/5/13

N2 - The literature on conflict and terrorism has paid little attention to the economic costs of terrorism for the perpetrators. This article aims to fill that gap by examining the economic costs of harboring suicide terror attacks. Using data covering the universe of Palestinian suicide terrorists during the second Palestinian uprising, combined with data from the Palestinian Labor Force Survey, the authors identify and quantify the impact of a successful attack on unemployment and wages. They find robust evidence that terror attacks have important economic costs. The results suggest that a successful attack causes an increase of 5.3 percent in unemployment, increases the likelihood that the district's average wages fall in the quarter following an attack by more than 20.0 percent, and reduces the number of Palestinians working in Israel by 6.7 percent relative to its mean. Importantly, these effects are persistent and last for at least six months after the attack.

AB - The literature on conflict and terrorism has paid little attention to the economic costs of terrorism for the perpetrators. This article aims to fill that gap by examining the economic costs of harboring suicide terror attacks. Using data covering the universe of Palestinian suicide terrorists during the second Palestinian uprising, combined with data from the Palestinian Labor Force Survey, the authors identify and quantify the impact of a successful attack on unemployment and wages. They find robust evidence that terror attacks have important economic costs. The results suggest that a successful attack causes an increase of 5.3 percent in unemployment, increases the likelihood that the district's average wages fall in the quarter following an attack by more than 20.0 percent, and reduces the number of Palestinians working in Israel by 6.7 percent relative to its mean. Importantly, these effects are persistent and last for at least six months after the attack.

KW - Economic costs

KW - Harboring

KW - Suicide terrorism

UR - http://www.scopus.com/inward/record.url?scp=77951985437&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=77951985437&partnerID=8YFLogxK

U2 - 10.1177/0022002709355922

DO - 10.1177/0022002709355922

M3 - Article

VL - 54

SP - 331

EP - 353

JO - Journal of Conflict Resolution

JF - Journal of Conflict Resolution

SN - 0022-0027

IS - 2

ER -