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Has transition improved well-being?

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  • Gruen, Carola
  • Klasen, Stephan

Abstract

In this paper we examine trends in economic well-being in transition countries from 1988 to 2008 to determine whether the populations of transition countries are better off today than prior to the transition process. To do this, we examine economic performance, inequality-adjusted well-being measures, subjective well-being measures, and non-income dimensions of well-being. While for many of the transition countries some indicators of well-being show improvements compared to the pre-transition period, the sharp rise in inequality and low levels of social indicators and subjective well-being suggest that well-being in many countries is similar to, or even below, the levels experienced prior to transition. The only indicators which have shown consistent improvements are measures of political and civil liberties.

Suggested Citation

  • Gruen, Carola & Klasen, Stephan, 2012. "Has transition improved well-being?," Economic Systems, Elsevier, vol. 36(1), pages 11-30.
    • Handle: RePEc:eee:ecosys:v:36:y:2012:i:1:p:11-30
    DOI: 10.1016/j.ecosys.2011.09.002
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    2. Kaito Doi & Masato Hiwatari, 2023. "Heterogeneous Impacts of Community-Level Trust on Life Satisfaction in Transition Countries: Perspectives on Institutions and Regional Diversity," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(6), pages 2895-2934, December.
    3. Olivia S. Jin & Phanindra V. Wunnava, 2023. "“Feeling richer and happier? The effect of self-perceived economic welfare on life satisfaction: longitudinal evidence from a transition economy”," SN Business & Economics, Springer, vol. 3(3), pages 1-19, March.
    4. Nikoloski Dimitar & Pechijareski Ljupcho, 2017. "The Unemployed Workers’ Perceptions of Stress and Employment Prospects in Macedonia: The Role of Alternative Adjustment Mechanisms," South East European Journal of Economics and Business, Sciendo, vol. 12(1), pages 68-79, April.
    5. Jiří Večerník & Martina Mysíková, 2014. "(Un)happy transition? Subjective Well-being in European Countries in 1991-2008 and Beyond," WIFO Working Papers 467, WIFO.
    6. Ekaterina Skoglund, 2017. "The happiness gap between transition and non-transition countries," World of Labour, LISER, pages 357-357, May.
    7. Stephen Jenkins, 2015. "World income inequality databases: an assessment of WIID and SWIID," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(4), pages 629-671, December.
    8. Annim, Samuel Kobina & Mariwah, Simon & Sebu, Joshua, 2012. "Spatial inequality and household poverty in Ghana," Economic Systems, Elsevier, vol. 36(4), pages 487-505.
    9. Huaxing Liu & Hong Gao & Qing Huang, 2020. "Better Government, Happier Residents? Quality of Government and Life Satisfaction in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 971-990, February.
    10. Vladimir Otrachshenko & Milena Nikolova & Olga Popova, 2023. "Double-edged sword: persistent effects of Communist regime affiliations on well-being and preferences," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1139-1185, July.
    11. Cancho,Cesar A. & Davalos,Maria Eugenia & Sanchez,Carolina, 2015. "Why so gloomy ? perceptions of economic mobility in Europe and Central Asia," Policy Research Working Paper Series 7519, The World Bank.
    12. Nazim Habibov & Alena Auchynnikava & Rong Luo, 2019. "Does Community Level Trust Improve Self-Rated Welfare?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(3), pages 669-697, December.
    13. Nikolova, Milena, 2016. "Minding the happiness gap: Political institutions and perceived quality of life in transition," European Journal of Political Economy, Elsevier, vol. 45(S), pages 129-148.
    14. Bozidar Cerovic & Aleksandra Nojkovic & Milica Uvalic, 2014. "Growth And Industrial Policy During Transition," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 59(201), pages 7-34, April – J.
    15. Otrachshenko, Vladimir & Nikolova, Milena & Popova, Olga, 2021. "Double-Edged Sword: Persistent Effects of Communism on Life Satisfaction," IZA Discussion Papers 14712, IZA Network @ LISER.

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    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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