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European identity and redistributive preferences

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  • Costa-Font, Joan
  • Cowell, Frank

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.

Suggested Citation

  • Costa-Font, Joan & Cowell, Frank, 2015. "European identity and redistributive preferences," LSE Research Online Documents on Economics 101811, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:101811
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    File URL: http://eprints.lse.ac.uk/101811/
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. European Identity and Redistributive Preferences
      by maximorossi in NEP-LTV blog on 2016-07-29 06:04:49

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    Cited by:

    1. Mathias Dolls, 2020. "An Unemployment Re-Insurance Scheme for the Eurozone? Stabilizing and Redistributive Effects," CESifo Working Paper Series 8219, CESifo.
    2. Mathias Dolls, 2019. "An Unemployment Re-Insurance Scheme for the Eurozone? Stabilizing and Redistributive Effects," EconPol Policy Reports 10, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Tom Coupé & Natalia Chaban, 2018. "The Impact of the European Song Contest on European Identity," Working Papers in Economics 18/03, University of Canterbury, Department of Economics and Finance.
    4. Sarah Ciaglia & Clemens Fuest & Friedrich Heinemann, 2018. "What a feeling?! How to promote ‘European Identity’," EconPol Policy Reports 9, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

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    More about this item

    Keywords

    spatial identity; Europe; welfare state support;
    All these keywords.

    JEL classification:

    • D69 - Microeconomics - - Welfare Economics - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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