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

The 1997 Indonesian financial crisis resulted in severe economicdislocation and political upheaval. Previous studies have establishedthe detrimental consequences for economic welfare, physicalhealth, and child education. The crisis also affected the psychologicalwell-being of the Indonesian people. Comparing responses ofthe same individuals interviewed before and after the crisis,this study documents substantial increases in several dimensionsof psychological distress among men and women across the agedistribution. It shows larger impacts of the economic crisison the more vulnerable groups, including those with low education,the rural landless, urban residents, and those in provincesmost affected by the crisis. Elevated psychological distresspersists even after the economy returns to precrisis levels,suggesting that the deleterious effects of the crisis may persistlonger on the psychological well-being of the Indonesian populationthan on standard measures of economic well-being.