Template-type: ReDIF-Paper 1.0 Author-Name: Neven Valev Author-Email: nvalev@gsu.edu Author-Homepage: http://aysps.gsu.edu/ValevN.html Author-Workplace-Name: International Studies Program. Andrew Young School of Policy Studies, Georgia State University Author-Workplace-Homepage: https://icepp.gsu.edu/ Title: No Pain, No Gain: Market Reform, Unemployment, and Politics in Bulgaria Abstract: In 1997, a new center-right government came to power in Bulgaria with a mandate to accelerate market reforms. By the time of the next elections in 2001, 75 percent of GDP was produced in the private sector, compared to 45 percent in 1996. The government however lost the elections. This paper uses unique survey data to examine whether the high unemployment associated with market reform contributed to the election outcome. The results suggest that high unemployment does not explain the election loss. In fact, many of the unemployed believed that high unemployment was the necessary price for future prosperity. Keywords: Market Reform, Unemployment, Politics, Bulgaria Length: 29 pages Creation-Date: 2003-05-01 File-URL:http://icepp.gsu.edu/files/2015/03/ispwp0310.pdf File-Format:Application/PDF Handle: RePEc:ays:ispwps:paper0310