The Impact of Macroeconomic Variables on Suicides : Are They Related in the Long-Run?

Background: This study investigates the cross-country long run relationship between suicides and macroeconomic variables (unemployment, per capita income, and inflation). It is hypothesized that while inflation level and unemployment level stimulate suicide and intentional self-harm in a society, per capita income level alleviates suicide and intentional self-harm in a society. Methods: A balanced annual data spanning the period 2000 to 2012 across 35 countries is used in the empirical analysis. We employ panel test and estimation approaches to reveal the long-run association among suicide, inflation, per capita income and unemployment series. The most conventional cross-sectional dependency tests, panel unit root tests, panel cointegration tests, and heterogeneous panel non-causality tests are implemented. Findings: We found a statistically significant cross-country long run association between suicides and all macroeconomic variables under study. The results of the study suggest that while 1% increase in per capita income causes 0.752% decrease in suicide rate, 1% increase in inflation and unemployment rate is associated with a rise in suicide rate by 0.088% and 0.238%, respectively. In regard to causality, there is no causality is identified between inflation and suicide. On the other hand, a statistically significant unidirectional causality running from per capita income level to suicide and a unidirectional causality running from suicide to unemployment are found. A unidirectional causality running from suicide to unemployment can be stem from the fact that rises in suicides are associated with both early indicators of economic downturns and during economic downturns when unemployment increases.Interpretation: Having found that adverse economic conditions such as increase in unemployment or inflation or decrease in per capita income triggers suicides and suicides are also associated with early indicators of economic crises, this study suggests that social and economic policy measures and programs related to labor market, health safety, family support and debt relief should be implemented both prior to and during economic crises in order to prevent suicides and loss of human capital of the society. Economic policies that result in a high level of unemployment or inflation should be critically assessed from the human cost of these measures.Funding Information: None.Declaration of Interests: The authors declare that they have no competing interests