The Causal Impact of Depression on Cognitive Functioning: Evidence from Europe

Vahé Nafilyan (), Mauricio Avendano Pabon () and Augustin de Coulon
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Vahé Nafilyan: London School of Hygiene & Tropical Medicine
Mauricio Avendano Pabon: King's College London

No 14049, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Cognitive skills are important determinants of employment and productivity in older adults. Although cognitive decline is often linked to changes in mental health, the causal nature of the association between mental illness and cognitive performance is not established. In this paper, we analyse the effect of depressive symptoms on cognitive function. Based on longitudinal data for older adults of working age, we use an instrumental variable approach to show that worsening depressive symptoms lead to a decline in cognitive skills. The economic consequences of impaired cognition caused by depressive symptoms may be a large component of mental illness's social costs.

Keywords: cognitive skills; mental health; longitudinal data (search for similar items in EconPapers)
JEL-codes: I10 J24 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2021-01
New Economics Papers: this item is included in nep-age, nep-hea, nep-lma and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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