The Impact of Being Poor During Crisis on Child Health and Cognitive Development in Indonesia

Shocks, such as economic crisis, that occur in the critical periods of children development are believed to have lasting effects. Using data from Indonesia Family Life Survey (IFLS), this study investigates the timing issue and whether Asian Financial 1997/1998 crisis has impacts on child health and cognitive development in Indonesia. By running pooled cross-section model, this study finds that generally crisis has not had negative impacts on child health and cognitive development for those who were poor. Yet, in urban areas, crisis struck harder and negatively affected the cognitive score of specific age groups. This study also finds that the critical periods of children development might be in the first two years of early life. Expenditure levels and mothers’ education are strong predictors for child health and cognitive development.