Impact of Social Service Expenditures on the Suicide Rate: The Cases of Asia Countries

Abstract

An empirical study reported that the economic crisis in European countries affected their suicide rates and described that an increase in social services expenditures of US$10 per person in labor market programs impacted the decrease in unemployment suicides by 0.038%. However, there has no study that the economic crisis in Asia countries affected their suicide rates. Since 2008, South Korea has been ranked first for suicide rate in the OECD countries. Many studies have blamed the economic crisis that followed from the US financial crisis in 2007 as the critical cause. However, in the case of Japan, the suicide rate decreased in the same time period (2008–2011) even though they faced the same financial crisis. The purpose of this study was to examine why the different situations in Korea and Japan occurred with the economic crisis through testing whether the government’s social service expenditure affects the people’s suicide rate in Asia countries. These efforts will contribute to understanding the critical role of social service.