Individual, Household and Family Responses to Terrorism: Evidence from Longitudinal Household Survey Data

Wayan Suriastini, SurveyMETER
Elizabeth Frankenberg, University of California, Los Angeles
Bondan Sikoki, SurveyMETER
Duncan Thomas, University of California, Los Angeles

The October 2002 bombing on Bali had a devastating effect on the economic security of the island's population. Unique longitudinal household survey data that were specially collected for this study are used to measure the impact on the well-being of individuals, households and their families. We contrast an array of indicators of well-being of respondents who were interviewed in February 2002, prior to the bombing, with indicators measured in early 2003, after the bombing. In addition to changes in earnings and income, we examine changes in household spending and household structure, as well as changes in physical and psycho-social health. Earnings collapsed by 20%--but families sought to smooth this effect. We identify some of the coping mechanisms they adopted including changes in living arrangements and re-arrangements of the household budget. Special attention is paid to how the family mitigates the effect of this large, unanticipated income shock.