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Do Social Isolation and Loneliness Affect Healthcare Spending and Utilization in Japan?

Author

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  • U. Furkan Yuksel

    (Ankara Yildirim Beyazit University)

Abstract

Social isolation and loneliness are associated with worse health outcomes, and there is a growing literature that studies the economic cost of these conditions in terms of increased healthcare spending and utilization. However, a handful of existing studies mostly focus on Western countries. This article analyses the issue in the case of Japan using the Japanese Study of Aging and Retirement (JSTAR) dataset with the help of generalized linear and probit models. The results show that social isolation is associated with reduced healthcare spending, while loneliness does not have any statistically significant effect. Neither social isolation (living alone) nor loneliness has a statistically significant effect on healthcare utilization; that is, these measures are not associated with increased or decreased inpatient or outpatient visits. Therefore, care should be taken when launching social programs to tackle social isolation and loneliness to reduce healthcare spending and utilization because these two conditions might not be associated with increased healthcare spending universally.

Suggested Citation

  • U. Furkan Yuksel, 2023. "Do Social Isolation and Loneliness Affect Healthcare Spending and Utilization in Japan?," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 9(2), pages 149-162, December.
    • Handle: RePEc:ana:journl:v:9:y:2023:i:2:p:149-162
    DOI: 10.22440/wjae.9.2.3
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    1. Julianne Holt-Lunstad & Timothy B Smith & J Bradley Layton, 2010. "Social Relationships and Mortality Risk: A Meta-analytic Review," PLOS Medicine, Public Library of Science, vol. 7(7), pages 1-1, July.
    2. Valtorta, N.K. & Moore, D.C. & Barron, L. & Stow, D. & Hanratty, B., 2018. "Older adults’ social relationships and health care utilization: A systematic review," American Journal of Public Health, American Public Health Association, vol. 108(4), pages 1-10.
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    More about this item

    Keywords

    Social isolation; Loneliness; Healthcare spending; Healthcare utilization;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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