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Early retirement and cognitive decline. A longitudinal analysis using SHARE data

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Author Info

  • Martina Celidoni

    ()
    (University of Padova)

  • Chiara Dal Bianco

    ()
    (University of Venezia)

  • Guglielmo Weber

    ()
    (University of Padova)

Abstract

We use a new measure of cognitive decline that is highly predictive of the onset of dementia and can be computed in standard surveys where recall memory tests are administered to the same individuals over the years. Using SHARE data, we investigate the association between cognitive decline and years in retirement controlling for age, physical health, early life conditions and socio-economic status. We find a positive association and an even stronger causal effect. The evidence we produce confirms the Ômental retirementÕ hypothesis and suggests its relevance for the onset of dementia.

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Bibliographic Info

Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0174.

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Length: 38 pages
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:pad:wpaper:0174

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Keywords: Ageing; cognition; retirement; instrumental variable estimation. Classification-JEL: I12; I1; J26.;

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