TY - RPRT AU - Jetter, Michael AU - Mahmood, Rafat AU - Stadelmann, David TI - Income and Terrorism: Insights from Subnational Data PY - 2021/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 14970 UR - https://www.iza.org/index.php/publications/dp14970 AB - To better understand potential relationships between income and terrorism, we study data for 1,527 subnational regions in 75 countries between 1970 and 2014. Results consistently imply an inverted U-shape that remains robust to accounting for a comprehensive set of region-level covariates, region- and time-fixed effects, as well as estimating an array of alternative specifications. The threat of terrorism systematically rises as low-income polities become richer, peaking at an income level of about US$12,800 per capita (in constant 2005 PPP US$), but then falls consistently above that level. This pattern emerges for domestic and transnational terrorism alike. Peaks in the income-terrorism relationship differ by perpetrator ideology. Thus, alleviating poverty per se may first exacerbate terrorism, contrary to much of the proposed recipes advocated since 9/11. KW - terror group ideology KW - transnational terrorism KW - domestic terrorism KW - subnational terrorism KW - subnational income ER -