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Retirement and Cognitive Functioning: International Evidence

Raquel Fonseca (), Arie Kapteyn and Gema Zamarro

Cahiers de recherche from Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques

Abstract: We survey the recent literature on the effects of retirement on cognitive functioning at older ages around the world. We describe results from studies using similar data, definitions and methods to capture causal effects. The studies yield widely varying results. Most papers find that being retired leads to a decline of cognition. However, the size and significance of the estimated effects vary dramatically depending on methods. We replicate several of these results using the same data sets. We discuss the factors that are likely causing the differences observed, and find that results are sensitive to the inclusion of “country effects”, suggesting a key role for unobserved differences across countries that affect both retirement ages and cognitive decline.

Keywords: cognition; retirement; aging; country fixed effects (search for similar items in EconPapers)
JEL-codes: C26 I14 J14 J26 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-age, nep-lma and nep-neu
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:criacr:1610

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