Why are we Hoosiers?

The word Hoosier became incorporated into the general Indiana vocabulary in the 1830s. John Finley, a resident of Richmond,  Ind., wrote the poem, “The Hoosier’s Nest.”

The poem was used at the “Carrier’s Address” of the Indianapolis Journal, Jan. 1, 1833. Finley originally wrote Hoosier as “Hoosher” because he thought it would be more understandable to his readers. Then on Jan. 8, 1833, at the Jackson Day dinner in Indianapolis, John W. Davis gave a toast named “The Hoosher State of Indiana.”
But where did the word Hoosier come from? Here are a few theories.  
 
‘Who’s yere?’
Whenever a visitor called out or knocked on the door of a pioneer cabin in Indiana, the settler would answer, “Who’s yere?” This common response eventually earned Indiana the nickname the “Who’s yere,” or Hoosier, state. There are no further explanations given as to why this phrase was more common in Indiana than Illinois or Ohio.

‘Husher’
Indiana river men were very talented at beating up, or “hushing,” their enemies in their frequent fights. These men eventually became known as “hushers,” something that eventually led to Hoosiers.

‘Hoosier’s men’
There was once a contractor named Hoosier who was employed on the Louisville and Portland Canal. He preferred to hire workers from Indiana. His workers were called “Hoosier’s men.” This eventually led to all Indiana citizens being called Hoosiers.

‘Hoosa’
A theory accredited to Gov. Joseph Wright states that the word Hoosier is derived from the Indian word for corn, “hoosa.” The Indiana flatboat men who took corn to New Orleans came to be known as “hoosa men,” or Hoosiers. However, this theory is not well supported because linguistics students once conducted a search of Indian vocabularies and did not find the word “hoosa.”

‘Whose ear?’
James Whitcomb Riley, the “Hoosier Poet,” claimed that Hoosier came from the aggressive habits of early Indiana settlers. They were vicious fighters who gouged, scratched and bit off noses and ears. This was so common that when a settler would walk into a tavern after a fight and see an ear on the floor, he would touch it with his toe and ask, “Whose ear?”

Source: http://www.in.gov/history/2612.htm