The health consequences of leaving school during economic crisis: Evidence from Indonesia

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Wednesday 05 June 2013


Seminar Room 1 Stanner Building 37 Crawford School


Dewa Wisana


Robert Sparrow

This study investigates the effect of leaving school during economic crisis 1998–2000 on men’s health in Indonesia. Two empirical patterns motivate this research: leaving school during economic crisis has persistent and negative career effects on workers; their labor market and health outcomes are correlated. I use provincial unemployment rate at the time of leaving school and economic crisis period to identify the persistent health effects. Five health outcomes and a health-risk behavior are examined: mental health, lung capacity, BMI, blood pressure, and smoking. Using the Indonesia Family Life Survey (IFLS) 2000 and 2007, I applies a standard health production function to model health consequences of leaving school during the economic crisis. Three key findings emerge. First, labor market condition–unemployment rate–affect school-leavers’ health conditions. Second, men who leave school during the economic crisis have worse mental health outcomes than men who leave school before crisis. Third, men who leave school during economic crisis have higher risky health behavior than their counterpart. Additional analysis suggests that the health effects may partially operate through labor market outcomes. This study reveal that men who leave school during bad economy may experience persistent poor labor market experiences and health as a result.

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