Retirement and Cognitive Development: Are the Retired Really Inactive?
This paper uses longitudinal test data to analyze the relation between retirement and cognitive development. Controlling for individual fixed effects and lagged cognition, we find that retirees face greater declines in information processing speed than those who remain employed. However, remarkably, their cognitive flexibility declines less, an effect that appears to be persistent 6 years after retirement. Both effects of retirement on cognitive development are comparable to the effect of a five to six-year age difference. Controlling for changes in blood pressure, which are negatively related to cognitive flexibility, we still find lower declines in cognitive flexibility for retirees. Since the decline in information processing speed after retirement holds particularly for the low educated, activating these persons after retirement could lower the social costs of an aging society.
|Date of creation:||Jun 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 00352 / 58 58 55 - 1
Fax: 00352 / 58 58 55 - 700
Web page: http://www.liser.lu
More information through EDIRC
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.:
- Norma B. Coe & Gema Zamarro, 2008.
"Retirement Effects on Health in Europe,"
588, RAND Corporation Publications Department.
- Dhaval Dave & Inas Rashad & Jasmina Spasojevic, 2006.
"The Effects of Retirement on Physical and Mental Health Outcomes,"
NBER Working Papers
12123, National Bureau of Economic Research, Inc.
- Dhaval Dave & R. Inas Rashad & Jasmina Spasojevic, 2008. "The Effects of Retirement on Physical and Mental Health Outcomes," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 497-523, October.
- Andries de Grip & Hans Bosma & Dick Willems & Martin van Boxtel, 2008.
"Job-worker mismatch and cognitive decline,"
Oxford Economic Papers,
Oxford University Press, vol. 60(2), pages 237-253, April.
- de Grip, Andries & Bosma, Hans & Willems, Dick & van Boxtel, Martin, 2007. "Job-Worker Mismatch and Cognitive Decline," IZA Discussion Papers 2956, Institute for the Study of Labor (IZA).
- Grip Andries de & Bosma Hans & Willems Dick & Boxtel Martin van, 2005. "Job-worker Mismatch and Cognitive Decline," ROA Research Memorandum 009, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Bonsang Eric & Adam Stéphane & Perelman Sergio, 2010.
"Does Retirement Affect Cognitive Functioning?,"
005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Costa, Dora L, 1998. "The Evolution of Retirement: Summary of a Research Project," American Economic Review, American Economic Association, vol. 88(2), pages 232-36, May.
- Calvo, Esteban & Haverstick, Kelly & Sass, Steven, 2007.
"What Makes Retirees Happier: A Gradual or 'Cold Turkey' Retirement?,"
5607, University Library of Munich, Germany.
- Esteban Calvo & Kelly Haverstick & Steven A. Sass, 2007. "What Makes Retirees Happier: A Gradual or 'Cold Turkey' Retirement?," Working Papers, Center for Retirement Research at Boston College wp2007-18, Center for Retirement Research, revised Oct 2007.
- Bruno, Giovanni S.F., 2005.
"Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models,"
Elsevier, vol. 87(3), pages 361-366, June.
- Giovanni S.F. Bruno, 2004. "Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models," KITeS Working Papers 159, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2004.
- Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
- Norma B. Coe & Hans‐Martin von Gaudecker & Maarten Lindeboom & Jürgen Maurer, 2012. "The Effect Of Retirement On Cognitive Functioning," Health Economics, John Wiley & Sons, Ltd., vol. 21(8), pages 913-927, 08.
- Vivian H. Hamilton & Philip Merrigan & Éric Dufresne, 1997. "Down and out: estimating the relationship between mental health and unemployment," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 397-406.
- Martin Browning & Anne Moller Dano & Eskil Heinesen, 2006. "Job displacement and stress-related health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1061-1075.
- Dora L. Costa, 1998.
"The Evolution of Retirement,"
in: The Evolution of Retirement: An American Economic History, 1880-1990, pages 6-31
National Bureau of Economic Research, Inc.
- Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
When requesting a correction, please mention this item's handle: RePEc:irs:cepswp:2013-11. 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: (Library and Documentation)
If references are entirely missing, you can add them using this form.