Perceptions and Labor Market Outcomes of Immigrants in Australia after 9/11

I examine whether after the terrorist attacks of September 11, 2001 Muslim immigrants and immigrants who fit the Muslim Arab stereotype in Australia perceive a greater increase in religious and racial intolerance and discrimination compared to other immigrant groups. I also examine whether there is a differential change in their labor market outcomes. I find that after 9/11 there is a greater increase in the likelihood of Muslim men and of those who look like Muslims to report a lot of religious and racial intolerance and discrimination relative to other immigrants. Further, I do not find evidence that after 9/11 Muslims or their stereotypes show a differential change in the likelihood of looking for a new main job or of being employed. There is also no evidence of a differential change in hours worked or in wage incomes. This suggests that the Australian labor market did not react to attitudinal changes in society, at least in the immediate aftermath of 9/11.