The Day After the Bomb: Well-Being Effects of Terrorist Attacks in Europe

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Abstract We study the non-monetary costs of terrorist attacks in France, Belgium and Germany between 2010 and 2017. Using four waves of the European Social Survey, we find that individual well-being is significantly reduced in the aftermath of a terrorist attack. We explore possible mechanisms, finding that terrorist attacks are negatively correlated with generalized trust, institutional trust, satisfaction with democracy and satisfaction with the government. Terrorist attacks are also found to be positively correlated with negative attitudes towards migrants and perceived discrimination. Contrary to expectations, the negative relationship between terrorism and well-being is less strong for Muslim immigrants. We interpret this finding as an indication that immigrants benefit more than natives from the institutional reaction following terrorist attacks.

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