IDEAS home Printed from https://ideas.repec.org/p/lvl/criacr/1610.html
   My bibliography  Save this paper

Retirement and Cognitive Functioning: International Evidence

Author

Listed:
  • Raquel Fonseca
  • Arie Kapteyn
  • Gema Zamarro

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.

Suggested Citation

  • Raquel Fonseca & Arie Kapteyn & Gema Zamarro, 2016. "Retirement and Cognitive Functioning: International Evidence," Cahiers de recherche 1610, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    • Handle: RePEc:lvl:criacr:1610
    as

    Download full text from publisher

    File URL: https://www.cedia.ca/sites/cedia.ca/files/cahier_16-10_cognitive_functioning.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2010. "Are Risk Aversion and Impatience Related to Cognitive Ability?," American Economic Review, American Economic Association, vol. 100(3), pages 1238-1260, June.
    2. Xiaoyan Lei & Yuqing Hu & John J. McArdle & James P. Smith & Yaohui Zhao, 2012. "Gender Differences in Cognition among Older Adults in China," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 951-971.
    3. Coe, N.B. & Lindeboom, M., 2008. "Does Retirement Kill You? Evidence from Early Retirement Windows," Other publications TiSEM 749af81e-10f6-4c32-b9ae-0, Tilburg University, School of Economics and Management.
    4. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    5. Bingley, Paul & Martinello, Alessandro, 2013. "Mental retirement and schooling," European Economic Review, Elsevier, vol. 63(C), pages 292-298.
    6. Joshua D. Angrist & Jörn-Steffen Pischke, 2015. "The path from cause to effect: mastering 'metrics," CentrePiece - The magazine for economic performance 442, Centre for Economic Performance, LSE.
    7. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 77-86, January.
    8. James Banks & Cormac O'Dea & Zoë Oldfield, 2010. "Cognitive Function, Numeracy and Retirement Saving Trajectories," Economic Journal, Royal Economic Society, vol. 120(548), pages 381-410, November.
    9. Martina Celidoni & Chiara Dal Bianco & Guglielmo Weber, 2013. "Early retirement and cognitive decline. A longitudinal analysis using SHARE data," "Marco Fanno" Working Papers 0174, Dipartimento di Scienze Economiche "Marco Fanno".
    10. Shane Frederick, 2005. "Cognitive Reflection and Decision Making," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 25-42, Fall.
    11. Fabrizio Mazzonna & Franco Peracchi, 2014. "Unhealthy retirement? Evidence of occupation heterogeneity," IdEP Economic Papers 1401, USI Università della Svizzera italiana.
    12. Anne Case & Christina Paxson, 2009. "Early Life Health and Cognitive Function in Old Age," American Economic Review, American Economic Association, vol. 99(2), pages 104-109, May.
    13. John Bound & Timothy Waidmann, 2007. "Estimating the Health Effects of Retirements," Working Papers wp168, University of Michigan, Michigan Retirement Research Center.
    14. Kevin Neuman, 2008. "Quit Your Job and Get Healthier? The Effect of Retirement on Health," Journal of Labor Research, Springer, vol. 29(2), pages 177-201, June.
    15. Daniel J. Benjamin & Sebastian A. Brown & Jesse M. Shapiro, 2013. "Who Is ‘Behavioral’? Cognitive Ability And Anomalous Preferences," Journal of the European Economic Association, European Economic Association, vol. 11(6), pages 1231-1255, December.
    16. James Banks & Fabrizio Mazzonna, 2012. "The Effect of Education on Old Age Cognitive Abilities: Evidence from a Regression Discontinuity Design," Economic Journal, Royal Economic Society, vol. 122(560), pages 418-448, May.
    17. Laura Bianchini & Margherita Borella, 2014. "Cognitive Functioning and Retirement in Europe," CeRP Working Papers 139, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eduardo Fé, 2021. "Pension eligibility rules and the local causal effect of retirement on cognitive functioning," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 184(3), pages 812-841, July.
    2. Martina Celidoni & Vincenzo Rebba, 2017. "Healthier lifestyles after retirement in Europe? Evidence from SHARE," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(7), pages 805-830, September.
    3. Yingying Zhang & Steve Bradley & Robert Crouchley, 2023. "Gender Differences in the Effect of Retirement Duration on Cognitive Functioning," Working Papers 379420912, Lancaster University Management School, Economics Department.
    4. Motegi, H. & Nishimura, Y. & Oikawa, M., 2016. "Retirement and Cognitive Decline: Evidence from Global Aging Data," Health, Econometrics and Data Group (HEDG) Working Papers 16/11, HEDG, c/o Department of Economics, University of York.
    5. Yoshinori Nishimura & Masato Oikawa & Hiroyuki Motegi, 2018. "What Explains The Difference In The Effect Of Retirement On Health? Evidence From Global Aging Data," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 792-847, July.
    6. Pierre-Jean Messe & François-Charles Wolff, 2019. "Healthier when retiring earlier? Evidence from France," Applied Economics, Taylor & Francis Journals, vol. 51(47), pages 5122-5143, October.
    7. Rafael Novella & Javier Olivera, 2014. "Mental Retirement and Non-Contributory Pensions for the Elderly Poor in Peru," Working Papers 14, Peruvian Economic Association.
    8. Hiroyuki Motegi & Yoshinori Nishimura & Kazuyuki Terada, 2016. "Does Retirement Change Lifestyle Habits?," The Japanese Economic Review, Japanese Economic Association, vol. 67(2), pages 169-191, June.
    9. Rose, Liam, 2020. "Retirement and health: Evidence from England," Journal of Health Economics, Elsevier, vol. 73(C).
    10. Lei, Xiaoyan & Liu, Hong, 2018. "Gender difference in the impact of retirement on cognitive abilities: Evidence from urban China," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1425-1446.
    11. Andreas Kuhn & Jean-Philippe Wuellrich & Josef Zweim�ller, 2010. "Fatal attraction? Access to early retirement and mortality," IEW - Working Papers 499, Institute for Empirical Research in Economics - University of Zurich.
    12. Hessel, Philipp, 2016. "Does retirement (really) lead to worse health among European men and women across all educational levels?," Social Science & Medicine, Elsevier, vol. 151(C), pages 19-26.
    13. Antoine Bozio & Clémentine Garrouste & Elsa Perdrix, 2021. "Impact of later retirement on mortality: Evidence from France," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1178-1199, May.
    14. Leimer, Birgit & van Ewijk, Reyn, 2022. "No “honeymoon phase”: whose health benefits from retirement and when," Economics & Human Biology, Elsevier, vol. 47(C).
    15. Bonsang, E. & Klein, T.J., 2012. "Retirement and subjective well-being," Other publications TiSEM f7d1a3d3-eb51-42d0-a3da-0, Tilburg University, School of Economics and Management.
    16. Mathilde Godard, 2015. "Gaining weight through retirement? Results from the SHARE survey," Post-Print halshs-01521884, HAL.
    17. Esteban Calvo & Natalia Sarkisian & Christopher Tamborini, 2011. "Searching for schools in a low quality market: Evidence from Chile," Working Papers 17, Facultad de Economía y Empresa, Universidad Diego Portales.
    18. Victor Stango & Joanne Yoong & Jonathan Zinman, 2017. "Quicksand or Bedrock for Behavioral Economics? Assessing Foundational Empirical Questions," NBER Working Papers 23625, National Bureau of Economic Research, Inc.
    19. Francesco D’Acunto & Daniel Hoang & Maritta Paloviita & Michael Weber, 2023. "IQ, Expectations, and Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(5), pages 2292-2325.
    20. Nikolov Plamen & Adelman Alan, 2018. "Short-Run Health Consequences of Retirement and Pension Benefits: Evidence from China," Forum for Health Economics & Policy, De Gruyter, vol. 21(2), pages 1-27, December.

    More about this item

    Keywords

    cognition; retirement; aging; country fixed effects;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lvl:criacr:1610. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/cediaca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.