IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Mental Retirement and Non-Contributory Pensions for the Elderly Poor in Peru

Listed author(s):
  • Rafael Novella

    (Inter-American Development Bank)

  • Javier Olivera

    (University of Luxembourg)

This paper analyses the effects of retirement on cognitive abilities for the elderly poor on the basis of the “mental retirement” effect that accompanies retirement. Given the recent emergence and expansion of non-contributory pension programs to alleviate poverty in old-age across low and middle income countries, attention should be given to the potential acceleration of cognitive decline when individuals retire, i.e. when there is a decrease in their engagement of cognitive demanding activities. We use a unique and recent survey of the elderly poor in Peru (ESBAM), which includes a cognitive test and serves as the baseline for a non-contributory pension program. We find a significant negative effect of retirement on cognitive ability after controlling for a number of demographics and objective health measures and even after dealing with the potential endogeneity of retirement.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://perueconomics.org/wp-content/uploads/2014/01/WP-14.pdf
File Function: Application/pdf
Download Restriction: no

Paper provided by Peruvian Economic Association in its series Working Papers with number 2014-14.

as
in new window

Length:
Date of creation: Aug 2014
Handle: RePEc:apc:wpaper:2014-014
Contact details of provider: Web page: http://perueconomics.org/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. repec:pri:cheawb:case_paxson_height_health_and_cognitive_function.pdf is not listed on IDEAS
  2. repec:pri:rpdevs:case_paxson_cog_function_additional.pdf is not listed on IDEAS
  3. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 77-86, January.
  4. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, 05.
  5. 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.
  6. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
  7. 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".
  8. Anne Case & Christina Paxson, 2008. "Height, Health, and Cognitive Function at Older Ages," American Economic Review, American Economic Association, vol. 98(2), pages 463-467, May.
  9. Susann Rohwedder & Robert J. Willis, 2010. "Mental Retirement," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 119-138, Winter.
  10. repec:pri:rpdevs:case_paxson_cog_function_additional is not listed on IDEAS
  11. Bonsang, Eric & Adam, Stéphane & Perelman, Sergio, 2012. "Does retirement affect cognitive functioning?," Journal of Health Economics, Elsevier, vol. 31(3), pages 490-501.
  12. Daniel McFadden, 2008. "Human Capital Accumulation and Depreciation," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 379-385.
  13. Mazzonna, Fabrizio & Peracchi, Franco, 2012. "Ageing, cognitive abilities and retirement," European Economic Review, Elsevier, vol. 56(4), pages 691-710.
  14. Cahit Guven & Wang Sheng Lee, 2013. "Height And Cognitive Function At Older Ages: Is Height A Useful Summary Measure Of Early Childhood Experiences?," Health Economics, John Wiley & Sons, Ltd., vol. 22(2), pages 224-233, February.
  15. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, January.
  16. repec:pri:rpdevs:case_paxson_height_health_and_cognitive_function.pdf is not listed on IDEAS
  17. Dwayne Benjamin & Loren Brandt & Jia-Zhueng Fan, 2003. "Ceaseless Toil? Health and Labor Supply of the Elderly in Rural China," William Davidson Institute Working Papers Series 2003-579, William Davidson Institute at the University of Michigan.
  18. 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.
  19. repec:pri:cheawb:case_paxson_height_health_and_cognitive_function is not listed on IDEAS
  20. repec:pri:rpdevs:case_paxson_height_health_and_cognitive_function is not listed on IDEAS
  21. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages 3-33, February.
  22. Bingley, Paul & Martinello, Alessandro, 2013. "Mental retirement and schooling," European Economic Review, Elsevier, vol. 63(C), pages 292-298.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:apc:wpaper:2014-014. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nelson Ramírez-Rondán)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.