"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. However, the government lost the elections. This paper uses unique survey data to determine whether the high unemployment associated with market reform contributed to the election outcome. Although high unemployment did influence popular opinion, the effect was relatively small. Many people, including those unemployed, believe that high unemployment is a necessary price for future prosperity."

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