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Unemployment and the dynamics of political support for economic reforms

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  • Jan Fidrmuc

Abstract

I analyze the dynamics of political support for economic reforms using a version of Rodrik's (1995) two-sector model of the transition economy. The key role is played by the pattern of flows between the state and private sectors and unemployment. It is shown that while the workers in the private sector always support rapid reforms, the workers in the state sector and the unemployed will support rapid reforms only at the outset of the transition. Later, state-sector workers and unemployed vote for a reduction in the speed of reforms.

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  • Jan Fidrmuc, 1999. "Unemployment and the dynamics of political support for economic reforms," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 3(2), pages 139-156.
    • Handle: RePEc:taf:jpolrf:v:3:y:1999:i:2:p:139-156
    DOI: 10.1080/13841289908523401
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    Cited by:

    1. Hayo, Bernd, 2004. "Public support for creating a market economy in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 720-744, December.
    2. Fidrmuc, Jan, 2000. "Political support for reforms: Economics of voting in transition countries," European Economic Review, Elsevier, vol. 44(8), pages 1491-1513, August.
    3. Riccardo Rovelli & Anzelika Zaiceva, 2013. "Did support for economic and political reforms increase during the post-communist transition, and if so, why?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(2), pages 193-240, April.
    4. Sirovátka, Tomáš & Guzi, Martin & Saxonberg, Steve, 2019. "Support for Market Economy Principles in European Post-Communist Countries during 1999–2008," MPRA Paper 97585, University Library of Munich, Germany.
    5. Matteo Migheli, 2016. "Behind the Wall: What Remains of the “Communist Legacy” in Contemporary Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 671-690, June.
    6. Jan Fidrmuc & Shuo Huang, 2013. "Unemployment, Growth and Speed of Transition in China," CESifo Working Paper Series 4410, CESifo.
    7. Migheli, Matteo, 2009. "The two sides of a ghost: Twenty years without the wall," POLIS Working Papers 125, Institute of Public Policy and Public Choice - POLIS.
    8. Lucie Coufalová & Lenka Kolajtová & Libor Žídek, 2023. "Public support for economic transition," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(1), pages 161-187, January.

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