A new GLO Discussion Paper finds that cohorts born around the start of transition are shorter than their older or younger peers. While the transition process has been a traumatic experience, its negative impact has largely been overcome.

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GLO Discussion Paper No. 404, 2019

Transition, height and well-being –  Download PDF
by Adserà, Alicia & Dalla Pozza, Francesca & Guriev, Sergei & Kleine-Rueschkamp, Lukas & Nikolova, Elena 

GLO Fellows Sergei Guriev & Elena Nikolova

Author Abstract: Using newly available data, we re-evaluate the impact of transition from plan to market 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 reform 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.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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