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A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic

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Abstract

We analyze the role of privatization in creating a constituency for economic reform, markets, and democratic institutions, focusing on the Czech Republic. Drawing on a 1996 survey, we examine the 1,459 respondents" opinions on reforms, economic policies and systems, the legitimacy of transition, and democratic values. Using ordered probit estimation, we find that receiving property through restitution is strongly associated with support for reform and markets. Concerning voucher privatization, we find positive effects for participants retaining shares, but little impact of participation alone. Our simulations suggest that policy designs have substantial consequences for citizens" support of reforms, markets, and democracy. Copyright 2003 Blackwell Publishing Ltd.
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  • John S. Earle & Scott G. Gehlbach, "undated". "A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic," Upjohn Working Papers jse20033, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:jse20033
    Note: Appears in Economics and Politics 15(1): 1-32
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    Cited by:

    1. Alberto Chong & Florencio de, 2003. "The Truth about Privatization in Latin America," Yale School of Management Working Papers ysm436, Yale School of Management.
    2. López-Calva, Luis F. & Bitrán, Eduardo, 2004. "Comments," LSE Research Online Documents on Economics 123101, London School of Economics and Political Science, LSE Library.
    3. Jin, Olivia & Pyle, William, 2023. "Labor market hardships and preferences for public sector employment and employers: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 577-591.
    4. Alberto Chong & Florencio Lopez-de-Silanes, 2004. "Privatization in Mexico," Research Department Publications 4373, Inter-American Development Bank, Research Department.
    5. Scott Gehlbach, 2003. "Taxability and Low-Productivity Traps," Working Papers w0029, New Economic School (NES).
    6. Anders Olofsgård, 2003. "The Political Economy of Reform: Institutional Change as a Tool for Political Credibility," World Bank Publications - Reports 9232, The World Bank Group.
    7. Ingrid Nielsen & Chris Nyland & Russell Smyth & Cherrie Jiuhua Zhu, 2005. "Perceptions of Subjective Economic Well-Being and Support for Market Reform among China's Urban Population," Post-Communist Economies, Taylor & Francis Journals, vol. 17(4), pages 425-447.
    8. Rafael di Tella & Ernesto Schargrodsky, 2009. "Happiness, Ideology and Crime in Argentine Cities," Research Department Publications 4645, Inter-American Development Bank, Research Department.
    9. Fidrmuc, Jan & Doyle, Orla, 2003. "Anatomy of Voting Behaviour and Attitudes During Post-Communist Transition Czech Republic 1990-98," CEPR Discussion Papers 3801, C.E.P.R. Discussion Papers.
    10. Rovelli, Riccardo & Zaiceva, Anzelika, 2009. "Transition Fatigue? Cross-Country Evidence from Micro Data," IZA Discussion Papers 4224, Institute of Labor Economics (IZA).

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    Keywords

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    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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