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Heterogeneous Treatment Effect of Retirement on Cognitive Function

Author

Listed:
  • Koryu Sato

    (Department of Social Epidemiology, Graduate School of Medicine and School of Public Health, Kyoto University)

  • Haruko Noguchi

    (Faculty of Political Science and Economics, Waseda University)

  • Kosuke Inoue

    (the Hakubi Project, Department of Social Epidemiology, Graduate School of Medicine and School of Public Health, Kyoto University)

Abstract

This study used instrumental variable causal forests to explore the heterogeneous treatment effect of retirement on cognitive function using data from 19 countries. We found that, on average, retirees have better cognitive function than workers and that the conditional average treatment effects vary depending on individuals’ characteristics. Policymakers should provide early retirement options in the pension system to allow individuals to decide when to retire. The balance between the social benefits of raising the state pension age and the individual costs of increasing the risk of dementia by delaying retirement should be considered.

Suggested Citation

  • Koryu Sato & Haruko Noguchi & Kosuke Inoue, 2023. "Heterogeneous Treatment Effect of Retirement on Cognitive Function," Working Papers 2306, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:2306
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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