Chapters in Books
Abstract:
The immediate effects of the Asian crisis on the well-being of
Indonesians are examined using the Indonesia Family Life Survey, an
ongoing longitudinal household survey. There is tremendous diversity in
the effect of the shock: for some households, it was devastating; for
others it brought new opportunities. A wide array of mechanisms was
adopted in response to the crisis. Households combined to more fully
exploit benefits of scale economies in consumption. Labor supply
increased even as real wages collapsed. Households reduced spending on
semidurables while maintaining expenditures on foods. Rural households
used wealth, particularly gold, to smooth consumption.