The Relationship between Unemployment and Suicide Attempts in OECD Countries: Panel Var Analysis and Panel Granger Causality Analysis

Abstract

Purpose – In this study, the relationship between unemployment and suicide rates in OECD countries was analyzed within the scope of 2000 and 2019. Suicide rates are handled by gender differences. It was aimed to determine the effect of unemployment on female and male suicide rates. Design/Methodology/Approach – Panel VAR model was established using unemployment and male and female suicide rates data and estimated by Holtz-Eakin, Newey and Rosen GMM method using orthogonal deviations. Impulse response functions were used to measure the effect of variables on another variable. In order to look at the effect of the shock that will occur in one variable on the other variable, prediction error variance decomposition was performed. Panel Granger Causality Test was applied to determine the direction of causality among the variables. Findings – It was concluded that unemployment and male and female suicide rates affect each other and each variable is affected by its own delay. A unidirectional causality relationship was found between unemployment and male suicide rates, and bidirectional causality between male and female suicide rates. Discussion – Considering the results that unemployment is the cause of suicide and the unemployed individual will attempt suicide within 4-5 years, it has emerged that it is necessary to intervene with individuals who were unemployed before and during this period and to prevent unemployment from causing suicide.