Exposure to Islamophobia: The impacts of an increased risk of bullying victimization on human capital.

We use the shock caused by terrorist attacks on the US on September 11, 2001, to study the short- and long-term consequences of exposure to Islamophobia in high-school-aged youths. Our estimates show an immediate sharp increase in rates of identity-based bullying against Arab/Muslim youths relative to youths of other ethnic groups during the years 2001-2003. We also find exposure to Islamophobia increased school dropout rates by 4.