The Long-term impact of the resettlement of the Sudetenland on residential migration* Martin Guzi, Peter Huber, and Štěpán Mikulat March 29, 2021 We analyze the long-term impact of the resettlement of the Sudetenland after World War II on residential migration. This event involved expulsion of ethnic Germans and an almost complete depopulation of an area of a country and its rapid resettlement by 2 million Czech inhabitants. Results based on a regression discontinuity design show a highly persistent higher population churn and thus a lower attachment of residents to their region in resettled areas. Descriptive evidence also indicates that resettled settlements still have fewer local club memberships, less frequently organize local social events and had lower turnout in municipal elections until the 1990s. This thus suggests persistently lower levels of local social capital. This finding is consistent with recent theoretical models that suggest a highly persistent impact of the destruction of local social capital on residential migration. Keywords: Migration, Social Capital, Sudetenland J E L Codes: N44, Z10, R23, J15 Declaration of interest: none. *Financial support by the Czech Science Foundation (grant No. 18-1611 IS) is gratefully acknowledged. We thank Alžběta Hanáčková, Barbora Kuklová and Marek Breza for excellent research assistance and Martin Halla, Benjamin Eisner, Tomáš Dvořák and Peter Egger, as well the participants of the 2017 research seminars at the University of Economics in Prague and the University of Stavanger, 2017, the 10th Geoffrey J.D: Hewings Regional Economics Workshop in Vienna, the 2018 Slovak Economic Association Meeting, the 2018 Scottish Economic Society Annual Conference, the 2019 ISWG workshop in Vienna, the 2019 GFR Winterseminar in Matrei and the 2019 Annual Meeting of the Austrian Economic Association, the 33r d Annual Conference of the European Society for Population Economics in Bath, the 2019 European Economic Association Annual Congress in Manchester, and the 2019 European Association of Labour Economists Conference in Uppsala for helpful comments. Computational resources were supplied by the project "e-Infrastruktura CZ" (e-INFRA LM2018140) provided within the program Projects of Large Research, Development and Innovations Infrastructures. ^Martin Guzi: Department of Public Economics, Masaryk University. Address: Lipová 41a, Brno, Czech Republic. Email: martin.guzi@econ.muni.cz, Peter Huber: Austrian Institute for Economic Research. Address: Arsenal Objekt 20, Wien, Austria. Email: peter.huber@wifo.ac.at, Štěpán Mikula: Corresponding author. Department of Economics, Masaryk University. Address: Lipová 41a, Brno, Czech Republic. Phone: +420 724 512 946. Email: stepan.mikula@econ.muni.cz. 1 1 Introduction A growing body of economic and political science research documents that the disruption of social structures caused by forced mass emigration has long-lasting and sizeable effects on the political attitudes (Acemoglu et al. 2011; Grosfeld et al. 2013), institutional, economic and educational outcomes (Acemoglu et al. 2011; Akbulut-Yuksel and Yuksel 2015; Pascali 2016; Bharadwaj et al. 2008; Testa 2020) and scientific achievements (Waldinger 2010, 2011) of the affected regions as well as on the forced migrants and their descendants (Becker et al. 2020). This literature (see: Becker and Ferrara 2019, for a survey) suggests that these impacts are substantially more long-lasting and sizeable than those found in the related literature on the destruction of physical capital (Brakman et al. 2004; Waldinger 2016). The long-run demographic impact of mass emigration has so far been much less analyzed. Among the exceptions Schumann (2014) focuses on population growth in a receiving region to provide evidence of a highly persistent demographic impact of the mass immigration to West Germany after World War II. The current paper adds to this literature by using the post-WWII mass expulsion of ethnic Germans from the area of today's Czech Republic (the so-called Sudetenland) to study the long-term impact of the subsequent resettlement on migration to and from the sending resettled regions. This focus may be interesting because migration is generally seen as a behavioural measure of the attractiveness of a region as a place of residence and the attachment of its population to the region (see e.g.: Greenwood et al. 1991). It may, also be interesting because the expulsion and subsequent resettlement we study resulted in an almost complete destruction of the social structures and networks in the affected region. Recent theoretical contributions to the social capital literature (see e.g., David et al. 2010; Brauninger and Tolciu 2011) suggest that such large shocks may have highly persistent effects on the attachment of residents to the region. In these models there are typically two stable long-run equilibria: One with low and one with high local social capital. Furthermore, since individuals derive utility from income and social capital they may forego financially profitable mobility. As a consequence, the high local social capital equilibrium is associated with low mobility, and the low local social capital equilibrium with high mobility. A sufficiently large shock to local social capital can move regions from one of these equilibria to the other, thereby causing a persistent change in migration rates from and to a region that goes hand in hand with persistent shift in local social capital levels. The empirical part of this literature confirms this strong impact of current and previous social contacts for mobility and suggests that in particular local contacts are an impediment to mobility, while contacts to other regions enhance it. For example Kan (2007) and Belot and Ermisch (2009) show that people with contacts in their region of residence are 2 less inclined to move elsewhere, while Biichel et al. (2020) show that mobile individuals prefer to live in places with more nearby contacts. This literature, however, considers the contemporaneous correlation between social capital and migration (i.e. the short-run). Yet recent evidence by Costa et al. (2018) also indicates a persistent long-run impact impact of social contacts on individual's location decisions, as civil war veterans serving in the same military unit tend to live close to each other in the long-run. We therefore add to this literature by analyzing the long-run impact of the resettlement of the Sudetenland, which caused an almost complete destruction of the social structures and networks, on mobility and presenting additional descriptive evidence on the long-run development of local social capital levels in the resettled municipalities. The resettlement of the Sudetenland is particularly well suited to identify such long-run impacts due to the size of the population exchange, the extraordinary speed with which ethnic Germans had to leave and the rapid resettlement that occurred in the follow-up. In the municipalities we study at least 90% of the population were ethnic Germans, who were subjected to expulsion and by and large completely replaced by Czech speaking settlers within five years. With the exodus of the German speakers also all local social networks and contacts of the resident population were destroyed and the newly arriving population had to re-establish all social contacts anew. This provides for large scale and credibly exogenous shock to local social capital in the affected region. In addition the fleeing population had to leave behind all of their belongings as well as all physical capital, and was rapidly replaced by settlers, who mostly came from other parts of the Czech Republic and took possession of the belongings and physical capital left behind. This limits the role of some potential explanations such as physical capital destruction or cultural or institutional differences, which have been emphasized as alternative sources for long-term differences in regional development in previous research (Grosfeld et al. 2013; Becker et al. 2015; Dell 2010; Alesina and Giuliano 2015). Finally, this paper also contributes to the still rather scant literature on the resettlement of the Sudetenland (see e.g., Daněk 1995; Testa 2020). Earlier work on this resettlement (Daněk 1995) used descriptive evidence on the district level to show that districts of the Czech Republic that were at least partially located in the Sudetenland, still have a younger, less well educated, more secularized and ethnically more diverse population than other districts of today's Czech Republic. More recently, Testa (2020), in the paper most closely related to this one, uses municipality level data and a spatial regression discontinuity design based on the borders drawn by the Munich Agreement, to show that former German municipalities still had a lower population density, higher rates of unemployment, less skill-intensive industries, and lower levels of education in 2011. He argues that a lack of agglomeration economies and the erosion of property rights caused by resettlement are 3 potential mechanisms that may have caused these differences. We augment these findings by a detailed analysis of the impact of resettlement on migration and by proposing an additional causal mechanism that may have contributed to these very long-run impacts. We combine a unique municipality-level administrative data set that includes all permanent residence changes in the years 1971 to 2015 with pre-WWII municipality-level data on the ethnic composition of municipalities in 1930. This allows us to identify the causal effects of resettlement on residential migration by comparing the most strongly affected municipalities with more than 90% ethnic Germans in 1930 (which we refer to as resettled municipalities) to municipalities with less than 10% ethnic German residents in 1930 (referred to as not resettled municipalities). We use a regression discontinuity (RD) design identification strategy where the inference is based on a precise definition of the border between ethnic German- and Czech-dominated areas before WWII. The results indicate that resettlement led to a long-lasting increase in residential migration to and from the resettled municipalities that survived such important institutional changes as the transition from a planned to a market economy, the dissolution of Czechoslovakia and accession to the European Union, and the many economic changes that occurred in the Czech Republic in that period. Even at the end of our observation period, in 2015 (i.e., 70 years after the resettlement), emigration and immigration rates in resettled municipalities were still substantially (by around 20%) higher than among not resettled municipalities. In addition, at the beginning of the period studied the effects of resettlement on emigration dominate over those on immigration, such that net emigration from resettled municipalities initially increased as well. This effect, however, levels off to zero after the mid-1980s, and is also less robust than the effect on gross-emigration and immigration rates. This suggests that—consistent with theoretical predictions—resettlement mainly resulted in a very long-run reduction in the attachment of the population to the affected regions. To provide additional descriptive evidence on the potential causal mechanisms for this long-run impact we analyze auxiliary data sets. We explore two mechanisms. The first one assumes that the original settlers moving into the Sudetenland belonged to the more mobile groups of the population at the time of resettlement and may have transferred their values related to mobility to their children, who are the migrants we study at the end of our observation period. The second is based on the assumption that resettlement led to a persistent large scale reduction in local social capital of the resettled territory, and thus moved these regions from the high social capital, low mobility to the low local social capital, high mobility equilibrium suggested by the theoretical literature. These analyses show that the population in the resettled and not resettled municipalities share similar mobility related values and also do not differ in terms of their behaviour with respect to proxy variables for social capital that is not clearly bound to the locality (such 4 their inclination to give donations to national organisations, as well as their willingness to attend social events and to participate in voluntary work potentially outside their region of residence). We, however, also find evidence that resettled municipalities had lower turnout rates in municipal elections up to the 1990s and have fewer local activities and clubs as well as lower membership levels in local clubs to this day. This suggests that local social capital is less well developed in the resettled regions. While therefore we cannot fully preclude some role for the parental transmission mechanism in explaining the long run impact of resettlement on migration decisions, we, therefore, argue that—consistent with many of the descriptions of these municipalities by historians (Glassheim 2006; Vaněk 1996; Čapka et al. 2005; Spurný 2011; Matějka 2008) and with theoretical models of the impact of local social capital on migration decisions—persistently lower local social capital in resettled municipalities is likely to have at least contributed to the persistently higher residential inand out-migration in these municipalities. The remainder of the paper is structured as follows. Section two provides the historical background of the resettlement. Section three presents the data. Section four introduces the identification strategy used. Section five describes the results. Section six discusses the mechanism driving the results, and section seven concludes. 2 Historical background 2.1 Ethnic Germans in the Czech Republic Germans had been settling in the area of today's Czech Republic since the 13t h century and, except for a short period from 1938 to 1945 under German occupation, their territory of settlement was always administered by the same state as the rest of today's Czech Republic. Compared with the Jewish population studied in the literature, the ethnic Germans in the Czech territory never belonged to a discriminated group (e.g., Alexander 2008; Meixner 1988). During the Austro-Hungarian Empire, of which today's Czech Republic was a part from the 16t h century to 1918, they tended to be more privileged relative to the Czech population partly because they spoke the official language of the empire. The German speaking population was, however, clearly segregated from the Czech population. According to the last Czechoslovak census prior to World War II the German speaking population mainly resided in a well defined territory in the north, west, and south of today's Czech Republic, the so-called Sudetenland (see Figure l ) , 1 and the number municipalities where both Germans and Czechs resided in equal numbers was rather low 1. The word Sudetenland is used in common language to denote the territories settled by the ethnic Germans before World War II. 5 (see Figure 2). The differences in economic and population structure between the two territories were small according to the results of this census. In particular, while the region where German speakers dominated were less agricultural and more industrial (see Tables A . l and A.2 in the Appendix) the share of migrants living in the two regions, which is the only proxy for migration provided in the 1930 census, were rather similar in the Czech and German speaking parts of today's Czech Republic (see Figure 3).2 Figure 1: Share of ethnic Germans in municipalities in 1930 Shire of ethnic Germans (To) 1O0 Source: CZSO, own calculations. Note: The ethnic German population is defined according to the primarily spoken language. The 1930 municipality-level data on ethnic Germans is harmonized with 6,168 municipalities defined in the 2011 census by using matching rules provided by the CZSO. Historic accounts also suggest that the relationships between the two population groups were relatively unproblematic for most of the time. Ethnic tensions between Czechs and Germans arose only in the second half of the 19t h century and continued after the break-up of the Austro-Hungarian Empire, when ethnic Germans comprised 29.5% of the population, according to the 1930 population census (see C Z S O 2014). Historical records document a number of complaints from German representatives during the interwar period inter alia about limited access to employment in the state bureaucracy, the closing of German language schools, and the asymmetric impact of land reforms in the 1920s. Yet, according to many accounts (e.g., Glassheim 2000) minority policy in Czechoslovakia was one of the most liberal in Central and Eastern Europe at the time. Ethnic tensions severely intensified 2. Data on employment structure and share of migrants are not available at municipal level in 1930 census. Therefore, we use data aggregated at the level of 330 judicial districts. For the definition of 1930 judicial districts see Figure A.l in the Appendix. 6 Figure 2: Distribution of municipalities by the share of ethnic Germans in 1930 0 25 50 75 100 Share of ethnic Germans (%) Source: CZSO, own calculations. Note: The ethnic German population is defined according to the primarily spoken language. The 1930 municipality-level data on ethnic Germans is harmonized with 6,168 municipalities defined in the 2011 census by using matching rules provided by the CZSO. only with the economic crisis in 1933 and the increasing popularity of German nationalist political parties. Under the Munich Agreement in 1938 the Sudetenland was annexed by the German Reich and remained under German rule until the end of WWII. 2.2 Expulsion of the Germans and resettlement In the aftermath of WWII, the ethnic Germans were held responsible for the Nazi atrocities and considered traitors. This perspective ultimately led to their expulsion from the country, which started with the end of WWII in May 1945 and proceeded in two phases. The initial phase, referred to as "wild expulsion", was poorly organized and controlled within a vague legal framework. Up to 800,000 Germans left the country in this phase until the autumn of 1945 (Wiedemann 2016). The second more organized phase continued from January to October 1946 and followed the agreements of the Potsdam Conference. The mass deportation during the second phase reduced the prewar population of ethnic Germans of 3 million to 200 to 300 thousand (Gerlach 2017). The share of ethnic Germans in the Czech population decreased from 29.5% (based on the 1930 census) to 1.8%3 based on the first postwar census in 1950 (CZSO 2014). 3. Data on ethnicity from the 1930 and 1950 censuses are not fully comparable due to methodological changes. Nevertheless, estimates of historians are very similar to the 1950 census data. According to Stanek (1991) there were 216,545 inhabitants of non-Slavic origin in 1947. The remaining Germans were also subjected to an internal relocation policy (Dvorak 2013). 7 Figure 3: Share of immigrants from other regions in total population injudicial districts in 1930 [0,10] (10,90] Share of ethnic Germans (%) (90,100] Source: CZSO, Urbánní a regionální laboratoř (URRlab) UK (2015), own calculations. Note: The ethnic German population is defined according to the primarily spoken language. For definition of 1930 judicial districts see 330 see Figure A.l in the Appendix. The process of resettlement occurred in parallel with the expulsion and was also rather rapid. Initially, people were encouraged through newspapers and radio broadcasting to seize German properties and were supported by Czech soldiers, militias, and security forces (Glassheim 2000). During the wild expulsion, (i.e. within the first year of expulsion) between 500,000 and 900,000 new settlers arrived in the Sudetenland.4 In addition Wiedemann (2016) states that the most massive inflows of settlers occurred until 1947 (i.e. one year after the beginning the second phase of deportation and two years after the end of WWII) and that resettlement was largely over by the end of 1952, with only modest inflows continuing on until the end of the 1950s.5 Similarly, Gerlach (2010) finds that almost 2 million new ethnic Czech settlers had arrived to Sudetenland by May 1947, while earlier estimates by Radvanovsky (2001) suggest an influx of 1.5 million over the first 2 years of resettlement. In sum thus resettlement was rather rapid and was clearly already completed in 1971 when our period of analysis starts. 4. Radvanovsky (2001) estimates that 514,515 settlers arrived in Sudetenland by September 16, 1945. Wiedemann (2016) states that their numbers reached 696,554 by mid-October and 862,706 by the end of 1945. 5. This extraordinary speed of resettlement is also documented in a number of anecdotes according to which new settlers ended up cohabiting with those to be expelled when deportation trains were delayed (e.g. Wiedemann (2016), p. 106). 8 2.3 The process of property acquisition by new settlers For the Czech citizens resettlement to the Sudetenland offered a unique opportunity to improve their economic and social status by acquiring a house and small piece of land (the official limit was 0.13 square kilometers)6 and thus also seizing the expellees' other property,7 as well as to obtain a better job, or to become a national administrator8 of seized properties (Wiedemann 2016). The key institutions for assigning property to the new settlers were about 100 local resettlement committees ("Osidlovacikomise"). They were responsible for collecting applications and redistributing land and property. They were also responsible for appointing national administrator for the vacated enterprises. Wiedemann (2016) reports that, given the "spontaneous" nature of the wild expulsion the work of the resettlement committees was rather complicated, inconsistent and also intransparent. Committees had only limited knowledge of the situation in general and occasionally allocated properties that were already taken and also caused many other irregularities. Settlers had to pay for the acquired property. Prices were low, and amounted to one to three yearly rents. Ten percent of the total price was due at the time of property acquisition. The remainder was payable in the following 15 years. Settlers could pay in cash or kind and a substantial part of the liabilities was never paid (Wiedemann 2016). The process of property redistribution with respect to enterprises and arable land was, however, also rather inconsequential, as the communist party decided to collectivize the land and the industrial property throughout the Czech Republic after the 1948 coup d'etat. This process started in 1949 and was by and large completed in the mid-1950s (i.e. shortly after resettlement had been completed). After this the Czech Republic remained to be a country with one of the lowest shares of private property of land and firms throughout the communist era, even among C O M E C O N countries, and private ownership of "means of production" was virtually non-existent until the early 1990s. The decisions of the resettlement committees were therefore relevant only for home-ownership, as this was the only part of the property of the expelled ethnic Germans that remained in private hands after the collectivization. 6. Čapka et al. (2005) document that 91% of the settlers in the villages around Mikulov previously owned land with acreage less than 0.03 square kilometers, and the typical acreage redistributed to settlers around Mikulov was 0.05 to 0.08 square kilometers. 7. The expellees could keep 30 kg and later 50 kg of their belongings (excluding valuables) during the more organized phase of the expulsion (Gerlach 2017). 8. This was a trustee who could manage an enterprise (or large farm) on behalf of the state with the prospect of becoming the owner (Gerlach 2017). 9 2.4 Characteristics of settlers The weak regulation (and often chaotic nature) of the resettlement makes it difficult to map the socioeconomic characteristics of settlers. Wiedemann (2016), Čapka et al. (2005) and Školí (1983) show, however, that settlers were young, often married couples, landless persons, small farmers, second-born children (with low prospects for family inheritance), or individuals who had worked in the civil services or non-agricultural sector. It is also highly likely that the settlers belonged to the more mobile groups in population. The resettlement policy aimed to attract people primarily from areas that were geographically close and climatically similar in order to increase the chances of settlers establishing economically and socially functional communities (Wiedemann 2016). Historical research documents that settlers almost exclusively moved from other regions of today's Czech Republic9 and over rather short distances. For example, Školí (1983) documents that only 16% of the settlers in Břeclav district moved less than 10 km, and 39% moved more than 100 km (Figure A.2 and Table A.3 in the Appendix). Settlers likely moved in smaller groups, however. Detailed statistics on the original municipalities of settlers in the Břeclav district reveal that 12% of settlers were from the same miunicipality of origin and 29% of settlers originated from the four most important municipalities (Table A.4 in the Appendix). In addition, Čapka et al. (2005) describe Sobotin in North Moravia as a municipality with a large group of settlers from the same original municipality, but even in this example, the settlers from the same original municipality comprise around 15% of the 1950 population. These major migratory movements resulted in two types of municipalities. Not resettled municipalities were inhabited by ethnic Czechs before WWII and were therefore not subject to expulsion and resettlement. The resettled municipalities were inhabited by ethnic Germans before WWII and thus lost most of their original population together with their human and social capital. The resettlement process brought new inhabitants to the emptied municipalities, who were allowed to seize the property left behind by the expelled but had to re-establish all local social contacts anew. In consequence resettlement also implied a massive destruction of local social capital in the resettled regions. 9. Školí (1983) notes that in the Břeclav district, located at the border with Slovakia and Austria, 90.3°/c of settlers were Czech, 2.1% were Slovak, and 7.6% were of other nationalities (Table A.5 in the Appendix). 10 3 Data 3.1 Migration and population data We investigate how the resettlement of Sudetenland affected the subsequent migration behavior in the resettled municipalities. The immigration and emigration rates as the key dependent variables of this analysis are taken from administrative records of permanent residence changes provided by the Czech Statistical Office (CZSO) for the period 1971 to 2015.1 0 These rates provide the number of movers from and to municipalities as a percentage of the population on January 1 and apply to a period when according to historical sources resettlement had clearly been completed, with the German-speaking population having been gone from the municipality and the country for 20 years or more.1 1 This data is highly reliable because residents of former Czechoslovakia (and of the current Czech Republic) are legally obliged to register changes of their permanent address. This registration also defines the constituency in municipal elections and is associated with preferential access to local public services such as healthcare, elementary schools, kindergartens, and subsidized accommodations for university students. We obtain the pre-WWII share of ethnic Germans in each municipality from the 1930 population census (the last census before WWII), in which ethnicity is defined according to the language primarily spoken in the household.1 2 We use this data to identify resettled and not resettled municipalities and to construct the ethnic border. Table 1 presents descriptive statistics of the pooled sample. We report averages and standard errors of migration variables, population, and the share of ethnic Germans in 1930 separately for the resettled and not resettled municipalities. The emigration rates were on average higher in the 1970s and 1980s compared with later periods, and the immigration rates are more stable over time. Both emigration and immigration rates are consistently higher in the resettled municipalities relative to not resettled ones throughout the observation period, but this difference narrows in later periods. Figure 4 adds to this information by presenting the size distribution of resettled and not resettled municipalities for individual census years. It shows that although resettled municipalities were in general larger prior to resettlement, their size reduced substantially after resettlement and they 10. Data is available at www.czso.cz/csu/czso/databaze-demografickych-udaju-za-obce-cr. We have data for 6,168 municipalities due to some records being lost prior to digitization and due to definition changes; this is an unbalanced panel. The baseline model is estimated with pooled data on all municipalities, and we address concerns that relate to missing observations in the robustness analysis in the Appendix to the paper. 11. Annual population data are obtained from the CZSO. We remove obvious outliers (i.e., the top 1% of emigration and immigration rates) from the data. In the robustness analysis we show that the inclusion of outliers slightly increases the estimated effects. 12. Data from the 1930 census was digitized by the authors (see Appendix B). Matching rules provided by the CZSO were applied to harmonize municipalities such as in the 2011 census. 11 also continued to loose population until the 1980s. Afterwards the size distribution of both types of municipalities remained rather stable and the population of both types of municipalities was also rather similar. Figure 4: The evolution of the size distribution of resettled and not resettled municipalities (1930 to 2011) 1930 1950 1961 1970 1980 1991 2001 2011 I—j—I Not resettled municipalities | - H Resettled municipalities Source: CZSO, own calculations. 3.2 Local social capital and values data In addition, to provide evidence on potential causal mechanisms, we collected data on values and different forms of social capital at a municipality level. This includes administrative data on voter turnout (i.e., the percentage of eligible voters who cast a ballot) in all free and voluntary municipal elections held in the Czech Republic provided by the CZSO. This, following the social capital literature (Knack 1992; Hotchkiss and Rupasingha 2018), is used as a proxy for local social capital. Further this includes survey data on values, civic participation, and charitable activities collected in 2003 and 2004, respectively.1 3 These survey data are, according to our review of the sources, the only publicly available data in the Czech Republic that allow us to examine shared norms and values as well as social capital at the municipality level. The 2003 survey (Majerova et al. 2003) was conducted in two waves and provides information on both local social capital as well as forms of social capital not 13. This data is described in more detail in the Appendix B of this paper. 12 Table 1: Descriptive statistics Period All Municipalities Resettled Not resettled Difference (2)-(3) Period (1) (2) (3) (4) Municipalities (n) 6,168 751 4,808 Share of ethnic Germans (%) 1930 18.43 95.92 0.48 95.43*** (0.45) (0.10) (0.02) Population (n) 1930 1,725.54 1,997.30 1,319.73 677.57** (172.51) (117.27) (202.09) Emigration rate (%) 1971-1979 3.50 5.05 3.19 1.85*** (0.008) (0.03) (0.008) 1980-1989 3.11 4.34 2.88 1.46*** (0.008) (0.03) (0.008) 1990-1999 2.44 3.12 2.29 0.83*** (0.006) (0.02) (0.007) 2000-2009 2.37 3.09 2.21 0.88*** (0.006) (0.02) (0.007) 2010-2015 2.51 3.26 2.34 0 (0.008) (0.03) (0.008) Immigration rate (%) 1971-1979 2.38 3.38 2.14 1 24*** (0.009) (0.03) (0.009) 1980-1989 2.35 3.14 2.19 0.95*** (0.008) (0.03) (0.009) 1990-1999 2.41 3.21 2.24 0.97*** (0.008) (0.03) (0.009) 2000-2009 3.03 3.64 2.90 0.74*** (0.009) (0.03) (0.01) 2010-2015 3.05 3.53 2.94 0.59*** (0.01) (0.03) (0.01) Net immigration rate (%) 1971-1979 -1.12 -1.67 -1.05 -0.62*** (0.01) (0.04) (0.01) 1980-1989 -0.76 -1.20 -0.69 -0.51*** (0.01) (0.03) (0.01) 1990-1999 -0.02 0.09 -0.05 0.14*** (0.009) (0.03) (0.01) 2000-2009 0.67 0.55 0.70 -0.14*** (0.009) (0.03) (0.01) 2010-2015 0.54 0.28 0.61 -0.33*** (0.01) (0.04) (0.01) Note: Columns (1) to (3) contain means and standard errors (in parentheses). Column (4) contains differences in means between resettled and not resettled municipalities and their statistical significance witht = p < 0.1, * = p < 0.05, **=/?< 0.01, ***=/?< 0.001. 13 bound to the region of the resettled and not resettled municipalities and their inhabitants. In the first wave, mayors of 1,324 municipalities were asked about the abundance of certain forms of local social capital in the municipality (i.e the frequency of local events organized by local clubs and local green activities). In the second wave, 1,287 residents in 223 municipalities were asked about memberships in local clubs, participation at social event events and donations, and volunteer work in potentially national organisations. Among these variables the first is a measure of local social capital, while the others pertain to aspects of social capital that are not necessarily bound to the municipality of residence. The 2004 survey (Majerova et al. 2004) asked 1,518 respondents in 220 municipalities about the importance of values in their life (i.e., nature and environment, a job, relationships, faith and spiritual values, hobbies, housing, friendship, family life and children, and material conditions). 3.3 Geographical data Since our identification strategies require geographic information, we geocode all municipalitylevel data using the reference points defined by the C Z S O 1 4 and obtain altitude and terrain roughness data for each municipality using remotely sensed elevation data from Shuttle Radar Topography Mission (SRTM) 1 Arc-Second Global.1 5 Altitude is measured as the elevation at the reference point. Terrain roughness is calculated as the average of terrain roughness index around the reference point1 6 such that higher values indicate rougher terrain. 4 Identification strategy Formerly German-dominated municipalities were clearly segregated from the Czechdominated municipalities and mainly located in the borderlands of today's Czech Republic. This segregation as well as the specific location of formerly German-dominated municipalities makes direct comparison of resettled and not resettled municipalities problematic as they could differ in unobserved characteristics that are correlated with their respective status (such as local labor market conditions, market access, etc.). This may lead to O L S estimation leading to biased estimates. To address this concern we identify causal effects by 14. These are placed in the social center of municipalities (i.e., typically in front of the town hall or church) 15. The SRTM data for the Czech Republic are transformed into approximately 30 x 40 meter tiles, which is the maximum homogeneous resolution available for the SRTM data of the Czech Republic. The terrain roughness index is calculated as the mean of the absolute differences between the altitude of a tile and the altitudes of its eight surrounding tiles (Wilson et al. 2007). 16. We use a 1.6 km radius throughout because this is the median radius of municipalities in the Czech Republic. 14 using a RD-design (Dell 2010; Becker et al. 2015; Egger and Lassmann 2015; Oto-Peralias and Romero-Avila 2017). We estimate the following specification: yit = y R M , + /3Zit + f(di) + where g is the geographical distance between municipalities adjusted for the earth's curvature, and p is the population difference. Both g and p are normalized variables with zero mean and unit variance across all municipality pairs eligible for matching. A resettled municipality is matched with an not resettled municipality that minimizes d. yn = p + y R M j + pZi + (f>t + 7]it (2) 77 Figure C.2: Matched pairs of municipalities by maximum permitted geographical distance and population differences (First part) 78 Figure C.3: Matched pairs of municipalities by maximum permitted geographical distance and population differences (Continued) (c) Version 3 Source: CZSO, own calculations. Note: In Version 1 municipalities are matched only if they are located less than 5 km from each other and their population difference is less than 500 inhabitants. In Versions 2 and 3 these maxima are 10 km and 250 inhabitants, and 10 km and 500 inhabitants, respectively. 79 Table C.5: Balance tests for matched pairs Matching version Version 1 Version 2 Version 3 Not resettled Resettled Not resettled Resettled Not resettled Resettled municipalities municipalities municipalities municipalities municipalities municipalities (1) (2) (3) (4) (5) (6) Altitude (meters) 348.304 353.598 362.827 385.405* 376.866 395.824 (19.691) (18.840) (10.604) (10.904) (10.107) (10.159) Terrain roughness 2.699 2.574 2.679 2.800 2.798 2.910 (0.188) (0.203) (0.112) (0.112) (0.099) (0.102) Distance to the country border (km) 27.280 25.901** 27.692 24.968*** 26.622 24.005*** (2.332) (2.256) (1.270) (1.202) (1.168) (1.097) Population3 832.718 831.254 821.441 819.232 882.305 921.772 (9.914) (12.011) (7.527) (7.809) (7.746) (8.351) Maximum geographical distance (meters) 5000 10000 10000 Maximum difference in population 500 250 500 Mean geographical distance (meters) 4135.2 8112.6 7909.4 Mean difference in population 206.4 118.6 214.6 Number of matched pairs 46 147 179 Note: In Version 1 municipalities are matched only if they are located less than 5 km from each other and their population difference is less than 500 inhabitants. In Versions 2 and 3 these maxima are 10 km and 250 inhabitants, and 10 km and 500 inhabitants, respectively. Table 2 reports means (and robust standard errors in parentheses) with statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1,* = p < 0.05, ** = p < 0.01, *** = p < 0.001. For geographical variables tests for differences in means control for matched pair fixed effects. Tests for difference in population additionally control for the log of altitude, terrain roughness, and log of distance to the country border. P-values are calculated using robust standard errors. Table C.6 presents the baseline estimates of the parameter of interest (7) of Equation (2) from all three versions of matching using standard errors that are clustered by municipality. Table C.6: Robustness test: Spatial matching strategy Matching 1s t version 2 n d version 3 r d versionrd (1) (2) (3) Resettled municipality (=1) Observations Adjusted R 2 Resettled municipality (=1) Observations Adjusted R 2 Resettled municipality (=1) Observations Adjusted R 2 Dependent variable: Emigration rate (%) 0.620*** 0.782*** 0.816*** (0.088) (0.053) (0.040) 3342 10404 12788 0.178 0.219 0.219 Dependent variable: Immigration rate (%) 0.516*** 0.607*** 0.546*** (0.085) (0.061) (0.058) 3342 10404 12788 0.119 0.126 0.136 Dependent variable: Net immigration rate (%) -0.104* -0.175** -0.271*** (0.051) (0.053) (0.055) 3342 10404 12788 0.119 0.136 0.140 Note: Estimates from Equation (2). In Version 1 settlements are matched only if they are located less than 5 km from each other and their population difference is less than 500 inhabitants. In Versions 2 and 3 these maxima are 10 km and 250 inhabitants, and 10 km and 500 inhabitants, respectively. All estimates control for pair fixed effects, year fixed effects, log of altitude, terrain roughness, and log of the distance to the country border. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1, * = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. These estimates suggest that resettlement increased emigration rates from the resettled municipalities by 0.6 to 0.8 percentage points and immigration rates by approximately 0.5 to 0.6 percentage points on average in the years 1971 to 2015. In addition, according to the results net immigration decreased by 0.1 to 0.3 percentage points per year on average in the studied period. A l l estimates are significant at least at 5% level and are fully comparable with baseline results obtained with RD-strategy. These results suggest that our baseline results are not driven by a specific definition of ethnic border. 81 C.6 Robustness test: The 1950 population as a control variable In the baseline specification we use 1930 population for population fixed effects. The 1930 population is clearly exogenous to the resettlement process, but it may be a bad proxy for the development infrastructure and other man-made amenities as municipality sizes of formerly German-dominated municipalities changed substantially between 1930 and the post-resettlement period. To address this concern we re-estimate the baseline specification (1) using 1950 population for population fixed effects. In the estimates (Table C.7), coefficients for emigration and immigration as well as net immigration rates change by less than 0.1 percentage points relative to the baseline results reported in the main part of the paper and also maintain their significance levels. C.7 Robustness test: Focusing on all municipalities Another concern with the RD-strategy is that we focus only on municipalities which either had a 90% German speaking majority in the German part of the country or a 90% Czech speaking majority in the Czech speaking part of the country. This means we omit 466 (18%) municipalities from our data (see Figure 2 in the main part of the paper). This could imply that estimates may be influenced by a few outliers located directly at the border. To check on this issue, we added another robustness check where we define resettled municipalities as municipalities with a majority (more than 50%) of ethnic Germans. The rest of municipalities as not being resettled. The disadvantage of this approach is that this may lead to a comparison of municipalities at the border, that were only marginally differently affected by resettlement. The advantage is that now virtually all municipalities in the 15 kilometer band around the ethnic border are included in the analysis. The results of this robustness check (reported in Table C.8) once more indicate a high consistency with the results reported in the main part of the paper. According to the results the impact of resettlement on emigration and immigration rates as well as net immigration rates changes by less than 0.2 throughout. The mild decline in the estimated effect is also consistent with inclusion of less-treated municipalities into the estimation sample. 82 Table C.7: Robustness test: The 1950 population as a control variable RD-polynomial 1s t order 2 order 3 order (1) (2) (3) Dependent variable: Emig;ration rate (%) Resettled municipality (= 0.710*** 0.688*** 0.597*** (0.062) (0.089) (0.129) Adjusted R 2 0.170 0.170 0.170 Observations 82388 82388 82388 Dependent variable: Immi:gration rate (%] Resettled municipality (==D 0.536*** 0.490*** 0.448** (0.071) (0.103) (0.147) Adjusted R 2 0.090 0.090 0.090 Observations 82388 82388 82388 Dependent variable: Net Immigration rate (%) Resettled municipality (= -0.173** -0.198* -0.150 (0.062) (0.089) (0.125) Adjusted R 2 0.097 0.097 0.097 Observations 82388 82388 82388 Note: Panel estimates from Equation (1) in the main text. Only municipalities within a 15 km band around the ethnic border are considered. Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect based on 1950 population, log of altitude, terrain roughness, log of the distance to the country border, and 2n d order polynomial of longitude and latitude. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1,* = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. 83 Table C.8: Robustness test: Focusing on all municipalities RD-polynomial 1s t order 2 n d order 3 r d order (1) (2) (3) Dependent variable: Emigration rate (%) Resettled municipality (= 0.593*** 0.514*** 0.491*** (0.039) (0.057) (0.081) Adjusted R 2 0.188 0.188 0.189 Observations 99109 99109 99109 Dependent variable: Immigration rate (%) Resettled municipality (==D 0.350*** 0.340*** 0.353*** (0.043) (0.062) (0.089) Adjusted R 2 0.103 0.103 0.103 Observations 99109 99109 99109 Dependent variable: Net Immigration rate (%) Resettled municipality (= -0.242*** -0.175** -0.138f (0.039) (0.057) (0.081) Adjusted R 2 0.100 0.100 0.100 Observations 99109 99109 99109 Note: Panel estimates from Equation (1) in the main text with resettled municipalities being defined as municipalities with German-speaking majority in 1930. All other municipalities are considered as not being resettled. Only municipalities within a 15 km band around the ethnic border are considered. Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect, log of altitude, terrain roughness, log of the distance to the country border, and 2n d order polynomial of longitude and latitude. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1, * = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. 84 C.8 Robustness test: Exclusion of a part of ethnic border close to Bavaria (West Germany) The major institutional shift related to fall of the Iron curtain and the communist regime in 1989 may have an asymmetric impact on municipalities in the estimation sample as it may asymmetrically increase the attractiveness of the Czech-German border region as a place of residence. In this robustness check we re-estimate regression (1) excluding the municipalities located close to Bavaria (West Germany) - see Figure C.4. The results reported in table C9 are once more highly consistent with those reported in the main text. Figure C.4: Municipalities within 15 km to the ethnic border after omitting part of ethnic border closest to Bavaria (West Germany) Results reported in Table C.9 are practically identical to the baseline estimates confirming high robustness of our results. C.9 Robustness test: Exclusion of a part of ethnic border characterized by a large number of irregularities One of the issues with using the RD-strategy is that throughout history (with the exception of the time from 1938 to 1945) a well-defined border between the Czech and German parts of today's Czech Republic did not exist and that the ethnic border between the two parts of the country is marked by a number of irregularities such as ethnic enclaves. To provide some evidence of the potential impact of these irregularities, we omitted municipalities 85 Table C.9: Robustness test: Exclusion of the part of the ethnic border closest to Bavaria (West Germany) RD-polynomial 1s t order 2 n d order 3 r d order (1) (2) (3) Resettled municipality (=1) Adjusted R 2 Observations Resettled municipality (=1) Adjusted R 2 Observations Resettled municipality (=1) Adjusted R 2 Observations Dependent variable: Emigration rate (%) 0.659*** 0.605*** 0.572*** (0.064) (0.091) (0.131) 0.172 0.172 0.172 72006 72006 72006 Dependent variable: Immigration rate (%) 0.456*** 0.409*** 0.400** (0.072) (0.103) (0.149) 0.098 0.098 0.098 72006 72006 72006 Dependent variable: Net immigration rate (%) -0.203** -0.196* -0.172 (0.065) (0.094) (0.134) 0.101 0.101 0.101 72006 72006 72006 Note: Panel estimates from Equation (1) in the main text. Only municipalities within a 15 km band around the ethnic border are considered. Municipalities on the part of the ethnic border closest to Bavaria (West Germany) are excluded from the sample (see Figure C.4). Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect, log of altitude, terrain roughness, log of the distance to the country border, and 2n d order polynomial of longitude and latitude. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1,* = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. 86 from the Northeast part of the Czech Republic characterized by a very ragged ethnic border.3 6 Figure C.5: Municipalities within 15 km to the ethnic border after omitting Northeast part of the Czech Republic Share of ahnic Germans (%) • l90L LOOj ReseLiled minid politic* (50, ft&j \t\ I Of Kol resetted municipuFiiic!Lllmic burnt!tr The exclusion of these municipalities from the sample has virtually no impact on the estimated effects in RD-analysis (see Table C.10). In the RD-regression the estimated impact of resettlement on the emigration rate is now marginally lower at 0.5 to 0.7 percentage points, as in the baseline specification, the estimated impact of the emigration rate also remains unchanged at 0.4 to 0.5 percentage points. The impact on net immigration is, however, insignificant for higher order RD-polynomials. This is in line with other results in the main part of the paper and suggests that results for net immigration rates are somewhat less robust (and limited only to the 1980s) than those pertaining to and net immigration rates. 36. For the sample of municipalities, included in this robustness check, after the exclusion of Northern Moravia see Figure C.5. 87 Table C I O : Robustness test: Exclusion of a part of ethnic border characterized by a large number of irregularities RD-polynomial 1s t order 2 n d order 3 r d order (1) (2) (3) Dependent variable: Emigration rate (%) Resettled municipality (=1) 0.734*** 0.631*** 0.546** (0.081) (0.123) (0.179) Adjusted R 2 0.154 0.154 0.154 Observations 57763 57763 57763 Dependent variable: Immigration rate (%) Resettled municipality (=1) 0.516*** 0.440** 0.494* (0.094) (0.140) (0.204) Adjusted R 2 0.085 0.085 0.085 Observations 57763 57763 57763 Dependent variable: Net immigration rate (%) Resettled municipality (=1) -0.218** -0.191 -0.052 (0.080) (0.120) (0.170) Adjusted R 2 0.092 0.092 0.092 Observations 57763 57763 57763 Note: Panel estimates from Equation (1) in the main text. Only municipalities within a 15 km band around the ethnic border are considered. Municipalities on the part of the ethnic border characterized by a large number of irregularities are excluded from the sample (see Figure C.5). Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect, log of altitude, terrain roughness, log of the distance to the country border, and 2n d order polynomial of longitude and latitude. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1, * = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. 88 CIO Robustness test: Divergent regional trends One concern with our baseline specification may be that regions are following different time trends in the outcome variable. These divergent trends may be a results of the new settlers "settling in" to their new region of residence, could be due to longer run trends in economic development over our rather long period of interest (1971-2015) or may result from the many major institutional reforms in the period (such as e.g. transition) that could impact on the attractiveness of certain regions analyzed. Since such could bias our baseline results we also extended specification (1) to include linear time trends each region that are allowed to differ for the period period before and after 1989, to account for the major shift in the institutional environment and correspond to trends observable in outcome variables. Results reported in Table C . l 1 are highly consistent with our baseline estimates as they do differ from those by less than 0.01 percentage points. C. 11 Robustness test: Using balanced panel data set As noted in the main part of the paper and detailed in Appendix B , we use unbalanced panel data on the municipalities to include the maximum number of observations possible. Focusing on this unbalanced data may lead to biased results if there are systematic difference in missing observations of resettled and not resettled municipalities. Since such selectivity cannot be entirely precluded we repeat estimates using a balanced panel of municipalities. This was constructed by using only those municipalities for which annual observations are available for all years from 1971 to 2015. Table C . l 2 shows the results for the causal impact of resettlement on residential migration. These results are highly consistent to results reported in the main part of the paper. The estimated treatment effects differ by less than 0.1 percentage points from those in the main part of the paper. 89 Table C. 11: Robustness test: Divergent regional trends RD-polynomial 1s t order 2 order 3 order (1) (2) (3) Dependent variable: Emig;ration rate (%) Resettled municipality (= 0.738*** 0.687*** 0.566*** (0.063) (0.092) (0.133) Adjusted R 2 0.172 0.172 0.172 Observations 82423 82423 82423 Dependent variable: Immigration rate (%] Resettled municipality (==D 0.505*** 0.466*** 0.410** (0.070) (0.103) (0.148) Adjusted R 2 0.096 0.096 0.096 Observations 82423 82423 82423 Dependent variable: Net immigration rate (%) Resettled municipality (= -0.233*** -0.221* -0.156 (0.063) (0.092) (0.131) Adjusted R 2 0.100 0.100 0.100 Observations 82423 82423 82423 Note: Panel estimates from extended Equation (1) in the main text. Only municipalities within a 15 km band around the ethnic border are considered. Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect, log of altitude, terrain roughness, log of the distance to the country border, 2n d order polynomial of longitude and latitude, and linear time trends for each region and period before/after 1989. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1, * = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. 90 T a b l e d 2: Robustness test: Balanced panel dataset RD-polynomial 1s t order 2 n d order 3 r d order (1) (2) (3) Resettled municipality (=1) Adjusted R 2 Observations Resettled municipality (=1) Adjusted R 2 Observations Resettled municipality (=1) Adjusted R 2 Observations Dependent variable: Emigration rate (%) 0.821*** 0.780*** 0.667*** (0.078) (0.113) (0.164) 0.214 0.214 0.214 57974 57974 57974 Dependent variable: Immigration rate (%) 0.467*** 0.478*** 0.435** (0.080) (0.113) (0.168) 0.098 0.097 0.098 57974 57974 57974 Dependent variable: Net immigration rate (%) -0.354*** -0.302** -0.232f (0.068) 0.101 57974 (0.101) 0.101 57974 (0.140) 0.101 57974 Note: Panel estimates from Equation (1) in the main text. Only municipalities within a 15 km band around the ethnic border and with full set of observations are considered. Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect, log of altitude, terrain roughness, log of the distance to the country border, and 2n d order polynomial of longitude and latitude. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1, * = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. 91 C.12 Robustness test: Inclusion of outliers In the main part of the paper we excluded the top 1% of all observations in terms of emigration and immigration rates to avoid using implausible values caused by unobserved shocks.3 7 Our motivation for this was that the RD-estimates (due to few observations directly at the border) may be very sensitive to such outliers. We therefore estimated RD-estimates with and without eliminating such outliers. Results in Table C. 13 indicate that depending on the functional form of the RD-polynomial, emigration rates were by 0.5 to 0.9 percentage points and statistically significantly higher in resettled than in not resettled municipalities. This is comparable or only slightly higher than the 0.6 to 0.7 percentage points in the baseline estimates. The results also suggest that immigration rates to the resettled municipalities from other regions were by 0.4 to 0.7 percentage points and statistically significantly higher in all estimates than in not resettled municipalities (rather than 0.4 to 0.5 percentage point in the baseline results). Finally, also the estimated effect of resettlement on net immigration rates are negative but lack statistical significance with the exception of the specification with first order RD-polynomial. C. 13 Robustness test: Impact of the resettlement by part of the country Since resettled municipalities are located across different parts of the border of today's Czech the estimated overall impact of the resettlement could be driven by some unobserved local-specific characteristics of different border segments. In one robustness test we therefore split our estimation sample into three sub-samples by nearest foreign country of the municipality (Poland, Germany, and Austria) that coincide with the northern, western, and southern parts of the Czech Republic. The descriptive evidence presented in Figure C.6 suggests that differences between resettled municipalities have higher migration rates than not resettled ones in all parts of the country. Results of the regression (1) estimated separately for each sub-sample corroborate this observation (see Table C. 14). Overall the results follow the pattern of the pooled baseline estimates. The effect of the resettlement on emigration rate is positive and significant in all parts of the country. On the other hand the estimates for immigration and net immigration rate tend to be less statistically significant. Differences between regions also seem to minor and—if anything—suggest a moderately weaker impact if estimates are based solely on regressions focusing on the Austrian border. 37. Vaněk (1996) discusses an example of such a when he states that 116 municipalities were destroyed due to lignite mining in Northwest part of the Czech Republic. 92 Table C.13: Robustness test: Inclusion of outliers RD-polynomial 1s t order 2 order 3 order (1) (2) (3) Dependent variable: Emig;ration rate (%) Resettled municipality (= 0.878*** 0.655*** 0.543** (0.083) (0.123) (0.175) Adjusted R 2 0.161 0.161 0.161 Observations 83849 83849 83849 Dependent variable: Immi:gration rate (%] Resettled municipality (==D 0.701*** 0.530*** 0.441* (0.100) (0.139) (0.197) Adjusted R 2 0.069 0.069 0.069 Observations 83849 83849 83849 Dependent variable: Net immigration rate (%) Resettled municipality (= -0.177* -0.125 -0.102 (0.084) (0.120) (0.157) Adjusted R 2 0.076 0.076 0.076 Observations 83849 83849 83849 Note: Panel estimates from Equation (1) in the main text. Only municipalities within a 15 km band around the ethnic border are considered. Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect, log of altitude, terrain roughness, log of the distance to the country border, and 2n d order polynomial of longitude and latitude. Symbols represent statistical significance of differences in means between resettled and not resettled municipalities with ' = p < 0.1, * = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. 93 Figure C.6: Migration rates by part of the country Poland 10 o -5H -10H £ 5- u 3 c .2 o- 3 blj -5 -10H Germany Austria io H OH -5 -10H Emigration rale Immigration rale Net immigration rate h-j—1 Not resettled municipalities |—'—I Resettled municipalities Source: CZSO, own calculations. Note: Migration rates are reported for municipalities in the estimation sample by nearest foreign country. 94 Table C.14: Robustness test: Impact of the resettlement by part of the country Part of the country Municipalities close to Poland Municipalities close to Germany Municipalities close to Austria RD-polynomial RD-polynomial RD-polynomial 1s t order 2 n d order 3r d order 1s t order 2 n d order 3r d order 1s t order 2 n d order 3r d order (1) (2) (3) (4) (5) (6) (7) (8) (9) Dependent variable: Emigration rate (%) Resettled municipality (==D 0.780*** 0.802*** 0.761*: ** 0 992*** 1.063*** 0.767t 0.439*** 0.427** 0.417* (0.083) (0.121) (0.170) (0.155) (0.278) (0.445) (0.111) (0.150) (0.199) Adjusted R 2 0.179 0.179 0.180 0.149 0.149 0.149 0.153 0.154 0.154 Observations 40685 40685 40685 22897 22897 22897 18841 18841 18841 Dependent variable: Immigration rate (%) Resettled municipality (==D 0.532*** 0.577*** 0.488*: 0.767*** 0.736* 0.659 0.339t 0.486 (0.087) (0.127) (0.182) (0.171) (0.301) (0.469) (0.148) (0.194) (0.301) Adjusted R 2 0.091 0.091 0.091 0.079 0.079 0.079 0.082 0.082 0.082 Observations 40685 40685 40685 22897 22897 22897 18841 18841 18841 Dependent variable: Net immi£;ration rate (°/< Resettled municipality (= -0.249** -0.224t -0.274t -0.224 -0.327 -0.108 -0.172 -0.089 0.068 (0.079) (0.117) (0.156) (0.156) (0.263) (0.381) (0.129) (0.163) (0.252) Adjusted R 2 0.107 0.107 0.107 0.098 0.099 0.099 0.095 0.096 0.096 Observations 40685 40685 40685 22897 22897 22897 18841 18841 18841 Note: Panel estimates from Equation (1) in the main text. Only municipalities within a 15 km band around the ethnic border are considered. Results control for year fixed effects, an RD-polynomial, region fixed effects, population fixed effect, log of altitude, terrain roughness, log of the distance to the country border, and 2n d order polynomial of longitude and latitude. Symbols represent statistical significance of differences in means between resettled and not resettled with ^ = p < 0.1, * = p < 0.05, ** = p < 0.01, *** = p < 0.001. Values in brackets are standard errors clustered by municipality. C.14 Robustness Check 7: Estimation of values data using the full set of values for responses As a final robustness check we conducted a linear regressions analysis of the values data used in the main part of the paper using the full set of values for responses. These robustness checks suggest that our choice of coding has few consequences for the quantitative results (see Table C.15). The estimated coefficients once more remain insignificant in most cases. The only exceptions being hobbies, health and material conditions in the old cohort. As also found in the main part of the paper the older cohort in resettled municipalities puts a higher value on the importance of hobbies. Furthermore, in contrast to the results in the main part of the paper, the same applies to the importance of material conditions, while the importance given to health is lower in the resettled municipalities. 96 Table C.15: Estimation of values data using the full set of values for responses Dependent variable: Things and values very importantin personal life (Likert scale, 4 = "Very important", 1= "Not important at all") Nature, environment Job, Relationships Faith, occupation spiritual values Hobbies Housing Friendship Health Family life and children Material conditions (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Panel A: Young cohort (18-29) Resettled municipality (== D 0.048 0.107 0.019 -0.120 0.130 0.058 0.039 -0.074 -0.150 0.143 (0.106) (0.091) (0.117) (0.163) (0.117) (0.079) (0.098) (0.113) (0.149) (0.102) Adjusted R2 0.045 0.051 0.067 0.098 0.028 0.021 0.045 0.036 0.218 0.027 Observations 680 680 680 680 680 680 680 679 680 679 Panel A: Young cohort (18-29) Resettled municipality (== D -0.041 0.112 -0.212 -0.154 0.320* -0.021 -0.030 -0.082t -0.104 0.302* (0.114) (0.235) (0.137) (0.181) (0.153) (0.099) (0.107) (0.046) (0.103) (0.141) Adjusted R2 0.030 0.013 0.017 0.091 0.002 0.013 0.012 0.040 0.125 0.048 Observations 611 602 609 608 610 611 609 610 610 610 Table reports estimated coefficients on an indicator variable for resettled municipalities after controlling for municipality (log of altitude, terrain roughness, log of distance to the country border, region fixed effect, and population fixed effect) and personal (age group, education, labor market status, marital status, household size, and for being born in the municipality of residence) characteristics. 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