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Does retirement affect cognitive functioning?

Author

Listed:
  • Bonsang, E.D.M.

    (Macro, International & Labour Economics, Research Centre for Educ and Labour Mark)

  • Adam, S.
  • Perelman, S.

Abstract

This paper analyses the effect of retirement on cognitive functioning using a longitudinal survey among older Americans, which allows controlling for individual heterogeneity and endogeneity of the retirement decision by using the eligibility age for social security as an instrument. The results highlight a significant negative effect of retirement on cognitive functioning. Our findings suggest that reforms aimed at promoting labour force participation at an older age may not only ensure the sustainability of social security systems but may also create positive health externalities for older individuals.
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Suggested Citation

  • Bonsang, E.D.M. & Adam, S. & Perelman, S., 2010. "Does retirement affect cognitive functioning?," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    • Handle: RePEc:unm:umamet:2010005
    DOI: 10.26481/umamet.2010005
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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