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Economic Consequences of Political Persecution (updated research)

Author

Listed:
  • Bohacek, Radim

    (CERGE-EI)

  • Myck, Michal

    (Centre for Economic Analysis, CenEA)

Abstract

We examine the consequences of political persecution under the communist regime on labor market outcomes using life history data from the Czech sample of the Survey of Health, Ageing and Retirement in Europe. The risk of persecution is instrumented using unique administrative data on the intensity of political oppression. We find strong evidence of career degradation as a consequence of persecution-driven job losses. Our estimates suggest that earnings in jobs following such a loss carried a penalty of over 60 percent that accumulated over time to substantially lower retirement benefits. We document the gravity of economic consequences for ordinary citizens persecuted by the authoritarian regime as well as effective compensating schemes implemented by democratic governments after 1989.

Suggested Citation

  • Bohacek, Radim & Myck, Michal, 2025. "Economic Consequences of Political Persecution (updated research)," IZA Discussion Papers 18282, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18282
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    Keywords

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    JEL classification:

    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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