"Mass Privatisation and the Post-Communist Mortality Crisis": Is There Really a Relationship?
AbstractWe reexamine the well-publicized claim that "rapid mass privatisation [of state-owned enterprises] . . . was a crucial determinant of differences in adult mortality trends in postcommunist countries" (Stuckler, King and McKee, 2009). Our analysis shows that the estimated correlation of privatization and mortality in country-level data is not robust to recomputing the mass-privatization measure, to assuming a short lag for economic policies to affect mortality, and to controlling for country-specific mortality trends. Further, in an analysis of the determinants of mortality in Russian regions, we find no evidence that privatization increased mortality during the early 1990s. Finally, we reanalyze the relationship between privatization and unemployment in postcommunist countries, showing that there is little support for the proposed mechanism by which privatization might have increased mortality.
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Bibliographic InfoPaper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number 10-162.
Date of creation: Feb 2010
Date of revision:
privatization; mortality; health; shock therapy; unemployment; Eastern Europe; Former Soviet Union; Lancet;
Find related papers by JEL classification:
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-CIS-2010-04-17 (Confederation of Independent States)
- NEP-HEA-2010-04-17 (Health Economics)
- NEP-TRA-2010-04-17 (Transition Economics)
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- Gerry, Christopher J., 2012. "The journals are full of great studies but can we believe the statistics? Revisiting the Mass Privatisation – Mortality Debate," Social Science & Medicine, Elsevier, vol. 75(1), pages 14-22.
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