Does retirement affect cognitive functioning?

Eric Bonsang, Stéphane Adam and Sergio Perelman

Journal of Health Economics, 2012, vol. 31, issue 3, 490-501

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.

Keywords: Ageing; Cognition; Retirement; Social security; Instrumental variable estimation (search for similar items in EconPapers)
JEL-codes: I12 J1 J24 J26 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (237)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:31:y:2012:i:3:p:490-501

DOI: 10.1016/j.jhealeco.2012.03.005

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