Retirement and cognitive development: are the retired really inactive?
AbstractThis paper uses longitudinal test data to analyze the relation between retirement and cognitivedevelopment. Controlling for individual fixed effects, we find that retirees face greater declinesin information processing speed than those who remain employed. However, remarkably, theircognitive flexibility declines less, an effect that appears to be persistent 6 years afterretirement. Both effects of retirement on cognitive development are comparable to those of a fiveto six-year age difference. They cannot be explained by (1) a relief effect after being employedin low-skilled jobs, (2) mood swings or (3) changes in lifestyle. Controlling for changes in bloodpressure, which are negatively related to cognitive flexibility, we still find lower declines incognitive flexibility for retirees. Since the decline in information processing speed afterretirement holds particularly for the low educated, activating these persons after retirementcould lower the social costs of an aging society.
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Bibliographic InfoPaper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 009.
Date of creation: 2012
Date of revision:
labour economics ;
Other versions of this item:
- DE GRIP Andries & DUPUY Arnaud & JOLLES Jelle & VAN BOXTEL Martin, 2013. "Retirement and Cognitive Development: Are the Retired Really Inactive?," CEPS/INSTEAD Working Paper Series 2013-11, CEPS/INSTEAD.
- Grip Andries de & Dupuy Arnaud & Jolles Jelle & Boxtel Martin van, 2012. "Retirement and cognitive development: are the retired really inactive?," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Andries de Grip & Arnaud Dupuy & Jelle Jolles & Martin van Boxtel, 2012. "Retirement and Cognitive Development: Are the Retired Really Inactive?," Working Papers 2012/14, Maastricht School of Management.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
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