6556 2017 July 2017 The Origins of Common Identity: Division, Homogeni- zation Policies and Identity Formation 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. 6556 Category 2: Public Choice The Origins of Common Identity: Division, Homogenization Policies and Identity Formation in Alsace-Lorraine Abstract We exploit the fact that disagreements in the German leadership after the Franco-Prussian War in 1870 led to a quasi-exogenous division of Alsace and Lorraine to provide rare evidence of group identity formation within historically homogeneous regions. In line with the rejection- identification hypothesis, people in the treated area which experienced a change in nation-status and were exposed to repressive homogenization policies express a stronger regional identity and support more regional autonomy today. On average, subjects with a stronger regional also express a stronger European identity, which we exploit in a regression discontinuity design at the municipal level to reveal whether these identity differences are causal. We find that support for the European Union is significantly stronger in two crucial referenda, a result that is robust across different specifications and bandwidths, and not driven by language differences, large agglomerations or distance to foreign countries.