Transition from Plan to Market, Height and Well-Being

Alicia Adsera, Francesca Dalla Pozza (), Sergei Guriev, Lukas Kleine-Rueschkamp and Elena Nikolova ()
Additional contact information
Francesca Dalla Pozza: EBRD, London
Lukas Kleine-Rueschkamp: University of Oxford
Elena Nikolova: Central European Labour Studies Institute

No 12658, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: well-being; transition from plan to market; height; structural reforms; Russia (search for similar items in EconPapers)
JEL-codes: I14 I31 O12 P36 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2019-09
New Economics Papers: this item is included in nep-cis, nep-hap and nep-hea
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Citations: View citations in EconPapers (5)

Published - published as 'Height and well-being during the transition from plan to market' in: Economic Policy, 2021, 36 (105), 77 - 120

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Working Paper: Transition from plan to market, height and well-being (2019)
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