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Psychological Health Before, During, and After an Economic Crisis: Results from Indonesia, 1993--2000

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  • Duncan Thomas

Abstract

The 1997 Indonesian financial crisis resulted in severe economic dislocation and political upheaval. Previous studies have established the detrimental consequences for economic welfare, physical health, and child education. The crisis also affected the psychological well-being of the Indonesian people. Comparing responses of the same individuals interviewed before and after the crisis, this study documents substantial increases in several dimensions of psychological distress among men and women across the age distribution. It shows larger impacts of the economic crisis on the more vulnerable groups, including those with low education, the rural landless, urban residents, and those in provinces most affected by the crisis. Elevated psychological distress persists even after the economy returns to precrisis levels, suggesting that the deleterious effects of the crisis may persist longer on the psychological well-being of the Indonesian population than on standard measures of economic well-being. Copyright The Author 2008. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / the world bank . All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Duncan Thomas, 2008. "Psychological Health Before, During, and After an Economic Crisis: Results from Indonesia, 1993--2000," World Bank Economic Review, World Bank Group, vol. 23(1), pages 57-76, November.
  • Handle: RePEc:oup:wbecrv:v:23:y:2008:i:1:p:57-76
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    1. Cruces, Guillermo & Glüzmann, Pablo & Calva, Luis Felipe López, 2012. "Economic Crises, Maternal and Infant Mortality, Low Birth Weight and Enrollment Rates: Evidence from Argentina’s Downturns," World Development, Elsevier, vol. 40(2), pages 303-314.
    2. Böhme, Marcus H. & Persian, Ruth & Stöhr, Tobias, 2015. "Alone but better off? Adult child migration and health of elderly parents in Moldova," Journal of Health Economics, Elsevier, vol. 39(C), pages 211-227.
    3. James Fenske & Achyuta Adhvaryu & Anant Nyshadham, 2014. "Early Life Circumstance and Adult Mental Health," Economics Series Working Papers 698, University of Oxford, Department of Economics.
    4. Adam Wagstaff & Magnus Lindelow, 2014. "Are Health Shocks Different? Evidence From A Multishock Survey In Laos," Health Economics, John Wiley & Sons, Ltd., vol. 23(6), pages 706-718, June.
    5. Mohseni-Cheraghlou, Amin, 2016. "The Aftermath of Financial Crises: A Look on Human and Social Wellbeing," World Development, Elsevier, vol. 87(C), pages 88-106.
    6. Bratti, Massimiliano & Mendola, Mariapia & Miranda, Alfonso, 2015. "Hard to Forget: The Long-Lasting Impact of War on Mental Health," IZA Discussion Papers 9269, Institute for the Study of Labor (IZA).
    7. Sarah Baird & Jacobus de Hoop & Berk Özler, 2013. "Income Shocks and Adolescent Mental Health," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 370-403.
    8. Nicola Jones & Hannah Marsden, 2010. "Assessing the Impacts of and Response to the 1997-98 Asian Financial Crisis through a Child Rights Lens," Working papers 1002, UNICEF,Division of Policy and Strategy.
    9. Research Group, Development, 2008. "Lessons from World Bank Research on Financial Crises," Policy Research Working Paper Series 4779, The World Bank.
    10. Strauss, John & Lei, Xiaoyan & Park, Albert & Shen, Yan & Smith, James P. & Yang, Zhe & Zhao, Yaohui, 2010. "Health Outcomes and Socio-Economic Status among the Elderly in China: Evidence from the CHARLS Pilot," IZA Discussion Papers 5152, Institute for the Study of Labor (IZA).
    11. Huijun Liu & Shuzhuo Li & Qunying Xiao & M. Feldman, 2014. "Social Support and Psychological Well-Being Under Social Change in Urban and Rural China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 979-996, November.
    12. W. Yeung & Zhenhua Xu, 2012. "Economic Stress, Quality of Life, and Mortality for the Oldest-Old in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 131-152, August.
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