Can Economic Policies Reduce Deaths of Despair?

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Abstract

Do minimum wages and the EITC mitigate rising “deaths of despair?” We leverage state variation in these policies over time to estimate event study and difference-in-differences models of deaths due to drug overdose, suicide, and alcohol-related causes. Our causal models find no significant effects on drug or alcohol-related mortality, but do find significant reductions in nondrug suicides. A 10 percent minimum wage increase reduces non-drug suicides among loweducated adults by 2.7 percent; the comparable EITC figure is 3.0 percent. Placebo tests and event-study models support our causal research design. Increasing both policies by 10 percent
would likely prevent a combined total of more than 700 suicides each year.

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