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Welfare Expenditure Growth and its Impact on Elderly Suicide Rates

Author

Listed:
  • Changsu Ko

    (Inha University)

  • Hwanoong Lee

    (Konkuk University)

Abstract

We investigate the causal effect of increased elderly welfare expenditure in South Korea on the suicide rate among older adults, using predicted expenditure changes induced by the Basic Pension reform as an instrumental variable. Our findings show that higher welfare spending explains 74.5% of the decline in the suicide rate among individuals aged 65+ between 2013 and 2019, with especially large reductions among men aged 80+. Household-level evidence indicates that while total income remained stable, consumption increased following the reform, particularly in transportation and leisure. We further show that the reform reduced unmet medical needs and stress and increased participation in community and leisure activities, while leaving depressive symptoms unchanged. Overall, the results indicate that stronger public income transfer programs reduce income uncertainty, enhance consumption and leisure activities, and play a crucial role in mitigating elderly suicide rates.

Suggested Citation

  • Changsu Ko & Hwanoong Lee, 2025. "Welfare Expenditure Growth and its Impact on Elderly Suicide Rates," Inha University IBER Working Paper Series 2025-2, Inha University, Institute of Business and Economic Research.
    • Handle: RePEc:inh:wpaper:2025-2
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    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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