- Increased elderly welfare expenditure accounted for 74.5% of the decline in suicide rates among those aged 65+ from 2013 to 2019, largest for men 80+.
- Household income remained stable while consumption rose, notably in transportation and leisure, following the Basic Pension reform.
- Reform reduced unmet medical needs and stress, increased social and leisure participation, suggesting income transfers lower uncertainty and thus reduce elderly suicide risk.
Health Econ. 2026 Oct 27. doi: 10.1002/hec.70169. Online ahead of print.
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 are consistent with the interpretation that stronger public income transfer programs reduce income uncertainty and expand opportunities for consumption, leisure, and social participation, thereby contributing to lower elderly suicide rates.
PMID:42946659 | DOI:10.1002/hec.70169
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