Ageing, cognitive abilities and retirement

Fabrizio Mazzona and Franco Peracchi
Additional contact information
Fabrizio Mazzona: Munich Center for the Economics of Aging
Authors registered in the RePEc Author Service: Fabrizio Mazzonna

No 1015, EIEF Working Papers Series from Einaudi Institute for Economics and Finance (EIEF)

Abstract: We investigate the relationship between ageing, cognitive abilities and retirement using the Survey on Health, Ageing and Retirement in Europe (SHARE), a household panel that offers the possibility of comparing several European countries using nationally representative samples of the population aged 50+. The human capital framework suggests that retirement may cause an increase in cognitive decline, since after retirement individuals lose the market incentive to invest in cognitive repair activities. Our empirical results, based on an instrumental variable strategy to deal with the potential endogeneity of retirement, confirm this key prediction. They also indicate that education plays a fundamental role in explaining heterogeneity in the level of cognitive abilities.

Pages: pages 37
Date: 2010, Revised 2012-01
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Citations: View citations in EconPapers (186)

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Related works:
Journal Article: Ageing, cognitive abilities and retirement (2012)
Working Paper: Aging, cognitive abilities and retirement (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eie:wpaper:1015

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