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

Upjohn Institute Staff Working Paper No. 02-79

49 Pages Posted: 19 Jun 2002

See all articles by John S. Earle

John S. Earle

George Mason University - Schar School of Policy and Government; IZA Institute of Labor Economics

Scott Gehlbach

University of Wisconsin-Madison

Multiple version iconThere are 2 versions of this paper

Date Written: April 15, 2002

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 1459 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.

JEL Classification: D72, L33, P26, P35

Suggested Citation

Earle, John S. and Gehlbach, Scott, A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic (April 15, 2002). Upjohn Institute Staff Working Paper No. 02-79. Available at SSRN: https://ssrn.com/abstract=315744 or http://dx.doi.org/10.2139/ssrn.315744

John S. Earle (Contact Author)

George Mason University - Schar School of Policy and Government ( email )

3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
United States
703-993-8023 (Phone)

HOME PAGE: http://earle.gmu.edu

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Scott Gehlbach

University of Wisconsin-Madison ( email )

1050 Bascom Mall
Madison, WI 53706
United States
608-263-2391 (Phone)

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