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Occupation, Retirement and Cognitive Functioning

Shinya Kajitani (), Kei Sakata, Colin McKenzie and McKenzie Colin
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Shinya Kajitani: Meisei University
Kei Sakata: Ritsumeikan University
Colin McKenzie: Keio University
McKenzie Colin: Keio University

Authors registered in the RePEc Author Service: Colin Ross McKenzie

No 27, Discussion Papers from Meisei University, School of Economics

Abstract: The purpose of this paper is to examine the causal impact of the duration of retirement on the cognitive functioning of male elderly workers in Japan using data from the National Survey of Japanese Elderly. We explore the effects of the career job on cognitive functioning by investigating how the occupational task requirements of a worker's career job such as physical demands, mathematical development, reasoning development, and language development impact on cognitive functioning after retirement. Our estimator takes account of the potential endogeneity of the duration of retirement and the left-censoring of the duration of retirement. Our empirical evidence suggests that mathematical tasks performed in a worker's career job reduce the deterioration of memory loss after retirement. In contrast, those who performed physically demanding tasks in their career job are more likely to suffer memory loss after retirement than those who did not perform such tasks.

Keywords: cognitive functioning; endogeneity; retirement; two stage estimation (search for similar items in EconPapers)
JEL-codes: I10 J2 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2014-02
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