The Cognitive Demands of Work and the Length of Working Life: The Case of Computerization
This paper focuses on impact of computerization on the work and retirement decisions of the cohort of 51-61 year old individuals who entered the Health and Retirement Study in 1992 and have been followed for next 18 years through 2010. I use data on cognition and detailed occupations in the HRS linked to a measure of occupational computerization from the O*NET data assembled by the Bureau of Labor Statistics. Beginning with Autor et al. (2003), the labor economics literature suggests that advances in computers substitute for the tasks done by many middle-skilled workers and complement those done by high-skilled individuals. Advances in computer technology tend, therefore, to lower the productivity of the middle-skilled and raise the productivity of the high skilled. Older workers face a decision of whether to invest in keeping up with new technology, shifting to another occupation or exiting from full time work into partial or full retirement. I find strong evidence that women and many men retired earlier if they are in computer-intensive occupations while, for other men it appears that computerization does not have a significant effect on retirement. Higher cognition and being in a high wage occupation appears to partially offset retirement incentives of computerization.
|Date of creation:||Dec 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 366 Galvez Street, Stanford, California 94305-6015|
Phone: (650) 725-1874
Fax: (650) 723-8611
Web page: http://siepr.stanford.edu
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.:
- Bonsang, Eric & Adam, Stéphane & Perelman, Sergio, 2012.
"Does retirement affect cognitive functioning?,"
Journal of Health Economics,
Elsevier, vol. 31(3), pages 490-501.
- Bonsang Eric & Adam Stéphane & Perelman Sergio, 2010. "Does Retirement Affect Cognitive Functioning?," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Bonsang Eric & Adam Stéphane & Perelman Sergio, 2010. "Does Retirement Affect Cognitive Functioning?," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Avner Ahituv & Joseph Zeira, 2011.
"Technical Progress and Early Retirement,"
Royal Economic Society, vol. 121(551), pages 171-193, March.
- Ahituv, Avner & Zeira, Joseph, 2000. "Technical Progress and Early Retirement," CEPR Discussion Papers 2614, C.E.P.R. Discussion Papers.
- Ahituv, Avner & Zeira, Joseph, 2002. "Technical Progress and Early Retirement," Working Paper Series rwp02-007, Harvard University, John F. Kennedy School of Government.
- Avner Ahituv & Joeph Zeira, . "Technical Progress and Early Retirement," Working Papers 0801, University of Crete, Department of Economics.
- David H. Autor & Frank Levy & Richard J. Murnane, 2001.
"The Skill Content of Recent Technological Change: An Empirical Exploration,"
NBER Working Papers
8337, National Bureau of Economic Research, Inc.
- David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
- David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1279-1333.
When requesting a correction, please mention this item's handle: RePEc:sip:dpaper:13-015. 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: (Anne Shor)
If references are entirely missing, you can add them using this form.