Mass privatization and mortality in small and medium sized industrial towns in Russia and Belarus
Keywords:
mortality, alcoholism, post-communist countries, privatisation, economic transitions, retrospective cohort studyAbstract
Background. While right after the onset of economic and political reforms transforming central planning to free market economy Russia experienced an unprecedented rise in mortality primarily among the working-age male population, Belarus did not experience such a shock. What can the difference between the mortality rates in two post-Soviet Slavic states be attributed to? Previous studies have indicated a link between privatisation reforms and mortality mostly via unemployment. However, existing studies rely on conventional registry-based mortality data or cross-national data, which makes them unable to single out the effect of privatization on mortality.
Methods. The study uses a novel dataset acquired by the PrivMort project, containing data on settlement- and enterprise levels as well as individual-level data on the respondents and their alive and dead relatives. The study using propensity score matching compares mortality and its determinants across mono- and multi-industrial settlements with different pace and style of privatization in Russia, where rapid mass-privatization policies were introduced in the early 1990s, and Belarus, which liberalised its economy maintaining a strong state. We used Poisson regressions with offset variable (time of exposure) as a number of years a person lived in the exposure period (1992–1998).
Findings. Using an age-adjusted Poisson regression, we demonstrate that among men aged 20–65, the speed of privatization has the strongest effect on mortality in mono-industrial towns that have undergone rapid mass privatization. Since Belarus has not undergone mass privatisation, the effect is only observable in Russia. We also identify a strong protective effect of living close to the border with Poland among Belarusian men and a strong protective effect of academic higher education. Furthermore, we demonstrate that unemployment in the 1990s and marital status have a strong effect on mortality. Single men when compared to men in stable partnerships are significantly more likely to die.
Interpretation. The policies of rapid mass privatization had a negative effect on mortality among working-age men. Russia, which implemented mass-privatisation policies including quick sale of state assets, rapid price liberalisation and stabilisation, fared significantly worse in terms of mortality levels than Belarus, which employed a slow liberalization strategy. The presence of strong state can significantly cushion the effect of large-scale economic crises as it a) directly affects mortality rates by less reduction in public spending; and b) indirectly affect mortality due to a smaller fall in output, smaller unemployment and poverty rates as well as by less income inequality.
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