The Effect of Young Adult Allowance on Suicide Rates

South Korea has the highest suicide rate among young adults in the OECD, reflecting the severe economic hardships faced by this population. This study investigates whether financial support policies targeting young adults can reduce suicide rates. Using geocoded mortality data from Statistics Korea and variations in policy implementation across regions and time, the study employs event-study and panel models to estimate the effects of young adult allowances on suicide rates. Robustness checks, including pre-trend tests and placebo regressions, ensure the validity of the findings. The results reveal a significant reduction in suicide rates among young adults following the implementation of these policies, with stronger effects observed for men than women. These findings align with prior research linking economic hardship to mental health outcomes and highlight the critical role of targeted financial policies in improving well-being. By addressing the underexplored relationship between youth labor policies and health, this study provides new evidence for policymakers seeking to mitigate the causes of youth suicide.