IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/14027.html
   My bibliography  Save this paper

Transition from plan to market, height and well-being

Author

Listed:
  • Guriev, Sergei
  • Adserà , Alícia
  • Dalla Pozza, Francesca
  • Kleine-Rueschkamp, Lukas
  • Nikolova, Elena

Abstract

Using newly available data, we re-evaluate the impact of transition from plan to market in former communist countries on objective and subjective well-being. We find clear evidence of the high social cost of early transition reforms: cohorts born around the start of transition are shorter than their older or younger peers. The difference in height suggests that the first years of reforms in post-communist countries were accompanied by major deprivation. We provide suggestive evidence on the importance of three mechanisms which partially explain these results: the decline of GDP per capita, the deterioration of healthcare systems, and food scarcity. On the bright side, we find that cohorts that experienced transition in their infancy are now better educated and more satisfied with their lives than their counterparts. Taken together, our results imply that the transition process has been a traumatic experience, but that its negative impact has largely been overcome.

Suggested Citation

  • Guriev, Sergei & Adserà , Alícia & Dalla Pozza, Francesca & Kleine-Rueschkamp, Lukas & Nikolova, Elena, 2019. "Transition from plan to market, height and well-being," CEPR Discussion Papers 14027, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:14027
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP14027
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:bla:etrans:v:15:y:2007:i::p:707-731 is not listed on IDEAS
    2. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," The World Bank Economic Review, World Bank, vol. 17(1), pages 1-25, June.
    3. Alberto Batinti & Joan Costa‐Font & Timothy J. Hatton, 2022. "Voting Up? The Effects of Democracy and Franchise Extension on Human Stature," Economica, London School of Economics and Political Science, vol. 89(353), pages 161-190, January.
    4. repec:hal:spmain:info:hdl:2441/7fst0pcf5j8cr99e1nuobt97rn is not listed on IDEAS
    5. Sergei Guriev & Ekaterina Zhuravskaya, 2009. "(Un)happiness in Transition," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 143-168, Spring.
    6. Angus Deaton, 2008. "Income, Health, and Well-Being around the World: Evidence from the Gallup World Poll," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 53-72, Spring.
    7. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2007. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 409-439.
    8. repec:pri:cheawb:case_and_paxson_early_life_health_w15637 is not listed on IDEAS
    9. Guriev, Sergei & Melnikov, Nikita, 2018. "Happiness convergence in transition countries," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 683-707.
    10. Sunnee Billingsley, 2011. "Economic crisis and recovery: Changes in second birth rates within occupational classes and educational groups," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 24(16), pages 375-406.
    11. repec:hal:spmain:info:hdl:2441/4srj73kg79978qkvocpskj1tvb is not listed on IDEAS
    12. repec:pri:cheawb:case_and_paxson_early_life_health_w15637.pdf is not listed on IDEAS
    13. Anne Case & Christina Paxson, 2010. "Causes and consequences of early-life health," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 65-85, March.
    14. repec:pri:cheawb:case_economic_development_abcde.pdf is not listed on IDEAS
    15. Djankov, Simeon & Nikolova, Elena & Zilinsky, Jan, 2016. "The happiness gap in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 108-124.
    16. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2004. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1019-1053, October.
    17. 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.
    18. John A. Maluccio & John Hoddinott & Jere R. Behrman & Reynaldo Martorell & Agnes R. Quisumbing & Aryeh D. Stein, 2009. "The Impact of Improving Nutrition During Early Childhood on Education among Guatemalan Adults," Economic Journal, Royal Economic Society, vol. 119(537), pages 734-763, April.
    19. Petra Persson & Maya Rossin-Slater, 2018. "Family Ruptures, Stress, and the Mental Health of the Next Generation," American Economic Review, American Economic Association, vol. 108(4-5), pages 1214-1252, April.
    20. Djankov, Simeon, 2016. "The divergent postcommunist paths to democracy and economic freedom," LSE Research Online Documents on Economics 118966, London School of Economics and Political Science, LSE Library.
    21. Petra Persson & Maya Rossin-Slater, 2018. "Family Ruptures, Stress, and the Mental Health of the Next Generation: Reply," American Economic Review, American Economic Association, vol. 108(4-5), pages 1256-1263, April.
    22. Anne Case, 2001. "Health, Income and Economic Development," Working Papers 271, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    23. repec:pri:rpdevs:case_economic_development_abcde is not listed on IDEAS
    24. repec:pri:rpdevs:case_and_paxson_early_life_health_w15637 is not listed on IDEAS
    25. Djankov, Simeon & Nikolova, Elena, 2018. "Communism as the unhappy coming," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 708-721.
    26. Schwekendiek, Daniel & Pak, Sunyoung, 2009. "Recent growth of children in the two Koreas: A meta-analysis," Economics & Human Biology, Elsevier, vol. 7(1), pages 109-112, March.
    27. Nicholas, Stephen & Steckel, Richard H., 1991. "Heights and Living Standards of English Workers During the Early Years of Industrializations, 1770–1815," The Journal of Economic History, Cambridge University Press, vol. 51(4), pages 937-957, December.
    28. Sunnee Billingsley & Aija Duntava, 2017. "Putting the pieces together: 40 years of fertility trends across 19 post-socialist countries," Post-Soviet Affairs, Taylor & Francis Journals, vol. 33(5), pages 389-410, September.
    29. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
    30. repec:ucn:wpaper:10197/317 is not listed on IDEAS
    31. Bailey, Roy E. & Hatton, Timothy J. & Inwood, Kris, 2018. "Atmospheric Pollution, Health, and Height in Late Nineteenth Century Britain," The Journal of Economic History, Cambridge University Press, vol. 78(4), pages 1210-1247, December.
    32. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2001. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height, Third Version," PIER Working Paper Archive 04-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 15 Mar 2004.
    33. repec:pri:rpdevs:case_economic_development_abcde.pdf is not listed on IDEAS
    34. repec:pri:cheawb:case_economic_development_abcde is not listed on IDEAS
    35. Richard H. Steckel, 1995. "Stature and the Standard of Living," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1903-1940, December.
    36. Paola Giuliano & Antonio Spilimbergo, 2014. "Growing up in a Recession," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 787-817.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:zbw:bofitp:2020_017 is not listed on IDEAS
    2. William Pyle, 2021. "Russia’s “impressionable years”: life experience during the exit from communism and Putin-era beliefs," Post-Soviet Affairs, Taylor & Francis Journals, vol. 37(1), pages 1-25, January.
    3. Batinti, Alberto & Costa-Font, Joan, 2022. "Does democracy make taller men? Cross-country European evidence," LSE Research Online Documents on Economics 113745, London School of Economics and Political Science, LSE Library.
    4. Batinti, Alberto & Costa-Font, Joan, 2022. "Does democracy make taller men? Cross-country European evidence," Economics & Human Biology, Elsevier, vol. 45(C).
    5. William Pyle, 2021. "Russia’s “impressionable years”: life experience during the exit from communism and Putin-era beliefs," Post-Soviet Affairs, Taylor & Francis Journals, vol. 37(1), pages 1-25, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adserà, Alicia & Dalla Pozza, Francesca & Guriev, Sergei & Kleine-Rueschkamp, Lukas & Nikolova, Elena, 2019. "Transition, height and well-being," GLO Discussion Paper Series 404, Global Labor Organization (GLO).
    2. Alícia Adserà & Francesca Dalla Pozza & Sergei Guriev & Lukas Kleine-Rueschkamp & Elena Nikolova, 2021. "Height and well-being during the transition from plan to market," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(105), pages 77-120.
    3. Gabriella Conti & Mark Hanson & Hazel Inskip & Sarah Crozier & Cyrus Cooper & Keith Godfrey, 2018. "Beyond Birth Weight: The Origins of Human Capital," Working Papers 2018-089, Human Capital and Economic Opportunity Working Group.
    4. Anne Case & Christina Paxson, 2010. "Causes and consequences of early-life health," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 65-85, March.
    5. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    6. Gabriella Conti, 2013. "The Developmental Origins of Health Inequality," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 285-309, Emerald Group Publishing Limited.
    7. Guriev, Sergei & Melnikov, Nikita, 2018. "Happiness convergence in transition countries," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 683-707.
    8. Elvisa Drishti & Zamira Shkreli & Edvin Zhllima & Blendi Gerdoçi, 2023. "Deprivation, Social Mobility Considerations, and Life Satisfaction: A Comparative Study of 33 European Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(3), pages 511-550, September.
    9. Malmendier, Ulrike M. & Borgschulte, Mark & Guenzel, Marius & Liu, Canyao, 2020. "CEO Stress, Aging, and Death," CEPR Discussion Papers 14933, C.E.P.R. Discussion Papers.
    10. repec:hal:spmain:info:hdl:2441/4srj73kg79978qkvocpskj1tvb is not listed on IDEAS
    11. Guriev, Sergei & Melnikov, Nikita, 2018. "Happiness convergence in transition countries," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 683-707.
    12. Lång, Elisabeth & Nystedt, Paul, 2018. "Two by two, inch by inch: Height as an indicator of environmental conditions during childhood and its influence on earnings over the life cycle among twins," Economics & Human Biology, Elsevier, vol. 28(C), pages 53-66.
    13. Guven, Cahit & Lee, Wang-Sheng, 2011. "Height and Cognitive Function among Older Europeans: Do People from "Tall" Countries Have Superior Cognitive Abilities?," IZA Discussion Papers 6210, Institute of Labor Economics (IZA).
    14. Elisabetta De Cao, 2015. "The Height Production Function from Birth to Age Two," Journal of Human Capital, University of Chicago Press, vol. 9(3), pages 329-363.
    15. Petter Lundborg & Carl Hampus Lyttkens & Paul Nystedt, 2016. "The Effect of Schooling on Mortality: New Evidence From 50,000 Swedish Twins," Demography, Springer;Population Association of America (PAA), vol. 53(4), pages 1135-1168, August.
    16. Janet Currie & Tom Vogl, 2013. "Early-Life Health and Adult Circumstance in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 1-36, May.
    17. Böckerman, Petri & Vainiomäki, Jari, 2013. "Stature and life-time labor market outcomes: Accounting for unobserved differences," Labour Economics, Elsevier, vol. 24(C), pages 86-96.
    18. Sonia Bhalotra & Samantha Rawlings, 2013. "Gradients of the Intergenerational Transmission of Health in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 660-672, May.
    19. Böckerman, Petri & Bryson, Alex & Viinikainen, Jutta & Hakulinen, Christian & Pulkki-Råback, Laura & Raitakari, Olli & Pehkonen, Jaakko, 2017. "Biomarkers and long-term labour market outcomes: The case of creatine," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 259-274.
    20. Anne Case & Christina Paxson, 2008. "Stature and Status: Height, Ability, and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 499-532, June.
    21. Sohn, Kitae, 2015. "The height premium in Indonesia," Economics & Human Biology, Elsevier, vol. 16(C), pages 1-15.

    More about this item

    Keywords

    Transition from plan to market; Structural reforms; Height; Well-being;
    All these keywords.

    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:14027. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.