European Identity and Redistributive Preferences

51 Pages Posted: 6 Jul 2015

See all articles by Joan Costa-Font

Joan Costa-Font

London School of Economics & Political Science (LSE)

Frank Cowell

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)

Multiple version iconThere are 2 versions of this paper

Date Written: June 29, 2015

Abstract

How important is spatial identity in shifting preferences for redistribution? This paper takes advantage of within-country variability in the adoption of a single currency as an instrument to examine the impact of the rescaling of spatial identity in Europe. We draw upon data from the last three decades of waves of the European Values Survey and we examine the impact of joining the single currency on preferences for redistribution. Our instrumentation strategy relies on using the exogenous effect of joining a common currency, alongside a battery of robustness checks and alternative instruments. Our findings suggest that joining the euro has a boosting effect on European identity; an opposite and comparable effect is found for national pride. We find that European identity increases preferences for redistribution, and that national pride exerts an equivalent reduction in preferences for redistribution.

Keywords: spatial identity, Europe, welfare state support

JEL Classification: D690, O520, H530

Suggested Citation

Costa-Font, Joan and Cowell, Frank A., European Identity and Redistributive Preferences (June 29, 2015). CESifo Working Paper Series No. 5412. Available at SSRN: https://ssrn.com/abstract=2627078

Joan Costa-Font (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://https://joancostaifont.org/

Frank A. Cowell

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 (0)171-955 7277 (Phone)
+44 (0)171-242 2357 (Fax)

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