"Mass Privatisation and the Post-Communist Mortality Crisis": Is There Really a Relationship?
Upjohn Institute Staff Working Paper 10-162
John S. Earle, Senior Economist
W.E. Upjohn Institute for Employment Research
Central European University
e-mail: earle@upjohn.org
Scott Gehlbach
University of Wisconsin-Madison
February 2010
JEL Classification Codes: I18, L33, P2, P31, O57
Abstract
We reexamine the well-publicized claim that "rapid mass privatisation [of state-owned
enterprises] . . . was a crucial determinant of differences in adult mortality trends in postcommunist
countries" (Stuckler, King and McKee, 2009). Our analysis shows that the estimated
correlation of privatization and mortality in country-level data is not robust to recomputing the
mass-privatization measure, to assuming a short lag for economic policies to affect mortality,
and to controlling for country-specific mortality trends. Further, in an analysis of the
determinants of mortality in Russian regions, we find no evidence that privatization increased
mortality during the early 1990s. Finally, we reanalyze the relationship between privatization and
unemployment in postcommunist countries, showing that there is little support for the proposed
mechanism by which privatization might have increased mortality.
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