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Retirement and Cognitive Development: Are the Retired Really Inactive?

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  • DE GRIP Andries
  • DUPUY Arnaud
  • JOLLES Jelle
  • VAN BOXTEL Martin

Abstract

This paper uses longitudinal test data to analyze the relation between retirement and cognitive development. Controlling for individual fixed effects and lagged cognition, we find that retirees face greater declines in information processing speed than those who remain employed. However, remarkably, their cognitive flexibility declines less, an effect that appears to be persistent 6 years after retirement. Both effects of retirement on cognitive development are comparable to the effect of a five to six-year age difference. Controlling for changes in blood pressure, which are negatively related to cognitive flexibility, we still find lower declines in cognitive flexibility for retirees. Since the decline in information processing speed after retirement holds particularly for the low educated, activating these persons after retirement could lower the social costs of an aging society.

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Bibliographic Info

Paper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2013-11.

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Length: 40 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:irs:cepswp:2013-11

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Keywords: Cognitive decline; Labor market activity; Retirement;

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  1. Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, Elsevier, vol. 87(3), pages 361-366, June.
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  4. Costa, Dora L., 1998. "The Evolution of Retirement," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226116082, 01-2013.
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  7. de Grip, Andries & Bosma, Hans & Willems, Dick & van Boxtel, Martin, 2007. "Job-Worker Mismatch and Cognitive Decline," IZA Discussion Papers 2956, Institute for the Study of Labor (IZA).
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Cited by:
  1. Sahlgren, Gabriel H., 2012. "Work ‘til You Drop: Short- and Longer-Term Health Effects of Retirement in Europe," Working Paper Series, Research Institute of Industrial Economics 928, Research Institute of Industrial Economics.

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