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

Posted: 17 Mar 2009

See all articles by Jed Friedman

Jed Friedman

World Bank - Development Research Group (DECRG); World Bank Group

Multiple version iconThere are 2 versions of this paper

Date Written: 2009

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.

Keywords: I10, O12

Suggested Citation

Friedman, Jed Arnold, Psychological Health Before, During, and after an Economic Crisis: Results from Indonesia, 1993-2000 (2009). The World Bank Economic Review, Vol. 23, Issue 1, pp. 57-76, 2009. Available at SSRN: https://ssrn.com/abstract=1360047 or http://dx.doi.org/lhn013

Jed Arnold Friedman (Contact Author)

World Bank - Development Research Group (DECRG)

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