Shattered ground, shaken minds: Mental health consequences of earthquakes

Despite growing recognition of the importance of mental health status for the achievement of the global development goals, substantial challenges persist in addressing this issue in both developed and developing countries. The literature has pointed to a variety of conditions as triggers for mental health problems, including exposure to unexpected natural disasters. Contributing to the literature, our study quantifies the mental health consequences of the devastating 2006 Yogyakarta earthquake in Indonesia. We combine the Modified Mercalli Intensity from the United States Geological Survey with individual-level data from the Indonesia Family Life Survey to assess the impacts on municipalities with varying earthquake intensities. Employing a difference-in-differences approach, we identify a significant and persistent deterioration in the mental health condition for individuals in municipalities with stronger earthquake severity. To explore the mechanisms underlying this impact, we analyze the roles of family casualties, physical health declines, and socio-economic disruptions, identifying family loss and worsened physical health as particularly influential factors driving the observed mental health outcomes.