7024 2018 April 2018 The Origins of Common Iden- tity: Division, Homogenization Policies and Identity For- mation in Alsace-Lorraine Sirus Dehdari, Kai Gehring Impressum: CESifo Working Papers ISSN 2364‐1428 (electronic version) Publisher and distributor: Munich Society for the Promotion of Economic Research ‐ CESifo GmbH The international platform of Ludwigs‐Maximilians University’s Center for Economic Studies and the ifo Institute Poschingerstr. 5, 81679 Munich, Germany Telephone +49 (0)89 2180‐2740, Telefax +49 (0)89 2180‐17845, email
[email protected] Editors: Clemens Fuest, Oliver Falck, Jasmin Gröschl www.cesifo‐group.org/wp An electronic version of the paper may be downloaded ∙ from the SSRN website: www.SSRN.com ∙ from the RePEc website: www.RePEc.org ∙ from the CESifo website: www.CESifo‐group.org/wp CESifo Working Paper No. 7024 Category 2: Public Choice The Origins of Common Identity: Division, Homogenization Policies and Identity Formation in Alsace-Lorraine Abstract We exploit the quasi-exogenous division of the French regions Alsace and Lorraine after the Franco-Prussian War in 1870 due to disagreements in the German leadership to provide evidence of group identity formation within historically homogeneous regions. People in the treated area, which was exposed to repressive homogenization policies aimed to suppress group identity, express a stronger regional identity and support more regional autonomy today. Using a regression discontinuity design at the municipal level, we find that support for two crucial referenda, which would have increased regional autonomy, subscription rates to regional newspapers, and regionalist party votes are significantly higher in the treated area. The results are robust across different specifications and bandwidths, and not driven by language differences, large agglomerations or distance to foreign countries.