Does retirement affect cognitive functioning

E.D.M. Bonsang, S. Adam, S. Perelman

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This paper analyses the effect of retirement on cognitive functioning using a longitudinal survey among older Americans, which allows controlling for individual heterogeneity and endogeneity of the retirement decision by using the eligibility age for social security as an instrument. The results highlight a significant negative effect of retirement on cognitive functioning. Our findings suggest that reforms aimed at promoting labour force participation at an older age may not only ensure the sustainability of social security systems but may also create positive health externalities for older individuals. 

Original languageEnglish
Pages (from-to)490-501
Number of pages12
JournalJournal of Health Economics
Volume31
Issue number3
DOIs
Publication statusPublished - May 2012

Keywords

  • Ageing
  • Cognition
  • Retirement
  • Social security
  • Instrumental variable estimation
  • ALZHEIMERS-DISEASE
  • EPISODIC MEMORY
  • OLDER MEN
  • LIFE-STYLE
  • DEMENTIA
  • RESERVE
  • DECLINE
  • WORK
  • IMPAIRMENT
  • OCCUPATION

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