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

32 Pages Posted: 27 Apr 2003

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 Chicago

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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.

Suggested Citation

Earle, John S. and Gehlbach, Scott, A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic. Available at SSRN: https://ssrn.com/abstract=388234

John S. Earle (Contact Author)

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

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IZA Institute of Labor Economics

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Scott Gehlbach

University of Chicago ( email )

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Chicago, IL 60637
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