Too Scared for School? Effects of Terrorism on Students’ Achievement

This study analyzes the impact of terror attacks on students’ academic achievement in Israel between 2001 and 2005, during the Second Intifada. Using within-student variation in exposure to terror attacks before exams, I find that a fatal terror attack before an exam adversely affects performance. The adverse effect, however, disappears for exams held five days or more after the attack. I explore potential explanations for these results, suggesting psychological impacts best explain the short-lived effect. Moreover, the temporary decrease in test scores does not affect the quality of diploma earned, suggesting no long-term effect on human capital accumulation.