Arbeitspapier

Transition from Plan to Market, Height and Well-Being

Using newly available data, we re-evaluate the impact of transition from plan to market in former communist countries on objective and subjective well-being. We find clear evidence of the high social cost of early transition reforms: cohorts born around the start of transition are shorter than their older or younger peers. The difference in height suggests that the first years of reform in former communist countries were accompanied by major deprivation. We provide suggestive evidence on the importance of three mechanisms which partially explain these results: the decline of GDP per capita, the deterioration of healthcare systems, and food scarcity. On the bright side, we find that cohorts that experienced transition in their infancy are now better educated and more satisfied with their lives than their counterparts. Taken together, our results imply that the transition process has been a traumatic experience, but that its negative impact has largely been overcome.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 12658

Classification
Wirtschaft
Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty
Health and Inequality
General Welfare; Well-Being
Microeconomic Analyses of Economic Development
Subject
transition from plan to market
structural reforms
height
well-being
Russia

Event
Geistige Schöpfung
(who)
Adsera, Alicia
Dalla Pozza, Francesca
Guriev, Sergei
Kleine-Rueschkamp, Lukas
Nikolova, Elena
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2019

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Adsera, Alicia
  • Dalla Pozza, Francesca
  • Guriev, Sergei
  • Kleine-Rueschkamp, Lukas
  • Nikolova, Elena
  • Institute of Labor Economics (IZA)

Time of origin

  • 2019

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