August 24, 2006 15:11 IST

Wages and weekly earnings of Arab and Muslim men living in the US fell by 10 per cent following 9/11, a new study shows.



In addition, the adverse effects of the terror attacks on wages were greater in areas that reported high rates of hate crime related to religious, ethnic or country of origin bias, according to the upcoming study in the Journal of Human Resources.



"I was surprised," Robert Kaestner, study co-author and University of Illinois at Chicago professor of economics, said of the findings.



"We see an immediate and significant connection between personal prejudice and economic harm."



Evidence suggests the terrorists' attacks reduced intrastate migration, making Arab and Muslim men more reluctant to seek better opportunities in new destinations due to the uncertainty of their reception.



The study measured changes in wages of first- and second-generation immigrants from countries with predominantly Arab or Muslim populations between September 1997 and September 2005 and compared them to changes in wages of first- and second-generation immigrants with similar skills from other countries.