Should I stay or should I go? The effect of London's terrorist attack on the educational choices of Muslims

This paper evaluates how the July 2005 London terrorist attacks affected Muslim teenagers' education plans and decisions. The attacks triggered a violent backslash against the Muslim community, which could have affected their incentives to continue in full-time education. I examine panel data on educational attitudes from the "Next Steps" Survey in England and use the month the survey was administered to divide individuals into treatment and control groups. I find that the attacks negatively affected the education plans of Muslims, but not those of any other major religious group. The probability of planning to continue in non-compulsory full-time education decreased by around 4.4% points for Muslims after the attacks. This corresponds to a 69% increase in individuals who were not sure whether to continue or drop out of full-time education. However, this change in plans appears to be a temporary reaction, since it did not affect students' actual decisions two years later.