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

Author

Listed:
  • 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.

Suggested Citation

  • 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".
    • Handle: RePEc:pad:wpaper:0174
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    References listed on IDEAS

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    1. Erich Battistin & Agar Brugiavini & Enrico Rettore & Guglielmo Weber, 2009. "The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 99(5), pages 2209-2226, December.
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    6. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    7. Susann Rohwedder & Robert J. Willis, 2010. "Mental Retirement," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 119-138, Winter.
    8. Bingley, Paul & Martinello, Alessandro, 2013. "Mental retirement and schooling," European Economic Review, Elsevier, vol. 63(C), pages 292-298.
    9. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2009. "Ageing and unused capacity in Europe: is there an early retirement trap?," Economic Policy, CEPR;CES;MSH, vol. 24, pages 463-508, July.
    10. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 77-86, January.
    11. 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, August.
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    Citations

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    Cited by:

    1. Müller, Tobias & Shaikh, Mujaheed, 2016. "Your Retirement and My Health Behaviour: Evidence on Retirement Externalities from a Fuzzy Regression Discontinuity Design," MPRA Paper 70843, University Library of Munich, Germany.
    2. Engl, Florian & Riedl, Arno & Weber, Roberto A., 2016. "Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs," Research Memorandum 016, Maastricht University, Graduate School of Business and Economics (GSBE).
    3. Rafael NOVELLA & Javier OLIVERA, 2014. "Mental retirement and non-contributory pensions for the elderly poor in Peru," Working Papers of Department of Economics, Leuven ces14.05, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    4. Bertoni, Marco & Brunello, Giorgio, 2014. "Pappa Ante Portas: The Retired Husband Syndrome in Japan," IZA Discussion Papers 8350, Institute of Labor Economics (IZA).
    5. Bertoni, Marco & Brunello, Giorgio, 2017. "Pappa Ante Portas: The effect of the husband's retirement on the wife's mental health in Japan," Social Science & Medicine, Elsevier, vol. 175(C), pages 135-142.
    6. Bertoni, Marco & Brunello, Giorgio & Mazzarella, Gianluca, 2018. "Does postponing minimum retirement age improve healthy behaviors before retirement? Evidence from middle-aged Italian workers," Journal of Health Economics, Elsevier, vol. 58(C), pages 215-227.
    7. Raquel Fonseca & Arie Kapteyn & Gema Zamarro, 2016. "Retirement and Cognitive Functioning: International Evidence," Cahiers de recherche 1610, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    8. Pasqualini, M. & Lanari, D. & Minelli, L. & Pieroni, L. & Salmasi, L., 2017. "Health and income inequalities in Europe: What is the role of circumstances?," Economics & Human Biology, Elsevier, vol. 26(C), pages 164-173.
    9. Clouston, Sean A.P. & Denier, Nicole, 2017. "Mental retirement and health selection: Analyses from the U.S. Health and Retirement Study," Social Science & Medicine, Elsevier, vol. 178(C), pages 78-86.

    More about this item

    Keywords

    Ageing; cognition; retirement; instrumental variable estimation.;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I1 - Health, Education, and Welfare - - Health
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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