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The Impact of Social Security Income on Cognitive Function at Older Ages Full Access

Author

Listed:
  • Padmaja Ayyagari

    (Department of Health Management and Policy, University of Iowa)

  • David Frisvold

    (Department of Economics, University of Iowa)

Abstract

Prior literature has documented a positive association between income and cognitive function at older ages; however, the extent to which this association represents causal effects is unknown. In this study, we use an exogenous change in Social Security income due to amendments to the Social Security Act in the 1970s to identify the causal impact of Social Security income on cognitive function of elderly individuals. We find that higher benefits led to significant improvements in cognitive function and that these improvements in cognition were clinically meaningful. Our results suggest that interventions even at advanced ages can slow the rate of decline in cognitive function.

Suggested Citation

  • Padmaja Ayyagari & David Frisvold, 2016. "The Impact of Social Security Income on Cognitive Function at Older Ages Full Access," American Journal of Health Economics, University of Chicago Press, vol. 2(4), pages 463-488, Fall.
    • Handle: RePEc:ucp:amjhec:v:2:y:2016:i:4:p:463-488
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    Cited by:

    1. Hwang, Inuk & Lee, Tae-Jin, 2022. "Health improvements of older adults based on benefit duration: Lessons from Korean social pension policies," Social Science & Medicine, Elsevier, vol. 315(C).
    2. Mika Akesaka & Peter Eibich & Chie Hanaoka & Hitoshi Shigeoka, 2023. "Temporal Instability of Risk Preference among the Poor: Evidence from Payday Cycles," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 68-99, October.
    3. Chen, Xi & Wang, Tianyu & Busch, Susan H., 2019. "Does money relieve depression? Evidence from social pension expansions in China," Social Science & Medicine, Elsevier, vol. 220(C), pages 411-420.
    4. Albani, Viviana & Brown, Heather & Vera-Toscano, Esperanza & Kingston, Andrew & Eikemo, Terje Andreas & Bambra, Clare, 2022. "Investigating the impact on mental wellbeing of an increase in pensions: A longitudinal analysis by area-level deprivation in England, 1998–2002," Social Science & Medicine, Elsevier, vol. 311(C).
    5. Pak, Tae-Young & Babiarz, Patryk, 2018. "Does cognitive aging affect portfolio choice?," Journal of Economic Psychology, Elsevier, vol. 66(C), pages 1-12.
    6. Maria Laura Alzua & Natalia Cantet & Ana C Dammert & Damilola Olajide, 2024. "The Well-being Effects of an Old-Age Pension: Experimental Evidence for Ekiti State in Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 33(3), pages 240-270.
    7. Yumi Ishikawa, 2023. "How do changes in household economic conditions affect cognitive function?," Asian Economic Journal, East Asian Economic Association, vol. 37(2), pages 190-209, June.
    8. Debra L. Brucker & Katie Jajtner & Sophie Mitra, 2022. "Does Social Security promote food security? Evidence for older households," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 671-686, June.
    9. Pak, Tae-Young & Kim, GwanSeon, 2017. "The impact of Medicare Part D on cognitive functioning at older ages," Social Science & Medicine, Elsevier, vol. 193(C), pages 118-126.
    10. Yumi Ishikawa, 2022. "How Do Changes in Economic Conditions Affect Cognitive Function?," Discussion Paper Series DP2022-17, Research Institute for Economics & Business Administration, Kobe University.
    11. Yan, Binjian & Chen, Xi & Gill, Thomas M., 2020. "Health inequality among Chinese older adults: The role of childhood circumstances," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    12. Nicolau Martin‐Bassols & Sonja C. de New & David W. Johnston & Michael A. Shields, 2023. "Cognitive activity at work and the risk of dementia," Health Economics, John Wiley & Sons, Ltd., vol. 32(7), pages 1561-1580, July.
    13. Beidelman, Erika T. & Chakraborty, Rishika & Jock, Janet & Whiteson Kabudula, Chodziwadziwa & Phillips, Meredith L. & Kahn, Kathleen & Eyal, Katherine & Bassil, Darina T. & Berkman, Lisa & Kobayashi, , 2024. "Impact of the South African Child Support Grant on memory decline and dementia probability in rural and low-income mothers, 2014–2021," Social Science & Medicine, Elsevier, vol. 358(C).
    14. Alzua, Maria Laura & Cantet, Maria Natalia & Dammert, Ana & Olajide, Daminola, 2020. "Mental Health Effects of an Old Age Pension: Experimental Evidence for Ekiti State in Nigeria," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304176, Agricultural and Applied Economics Association.
    15. Janet Jock & Erika T Beidelman & Meredith Phillips & Lindsay C Kobayashi & Xiwei Chen & Stephen Tollman & Chodziwadziwa Whiteson Kabudula & Darina T Bassil & Ryan Wagner & Lisa Berkman & Molly Rosenbe, 2025. "Effects of pension eligibility expansion on men’s memory decline and dementia probability: Findings from the HAALSI cohort in rural South Africa, 2014–2021," PLOS ONE, Public Library of Science, vol. 20(6), pages 1-16, June.

    More about this item

    Keywords

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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