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Retirement and cognitive decline. A longitudinal analysis using SHARE data

Author

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  • Celidoni, Martina
  • Dal Bianco, Chiara
  • Weber, Guglielmo

Abstract

We show that a new measure of cognitive decline, that can be computed in longitudinal surveys where respondents perform the same recall memory tests over the years, is highly predictive of the onset of dementia. Using SHARE data, we investigate the way retirement affects cognitive decline over time controlling for age, education and other confounding factors. We find that retirement has a long-term detrimental effect on cognition for individuals who retire at the statutory eligibility age. It plays instead a protective role for those who retire on an early retirement scheme.

Suggested Citation

  • Celidoni, Martina & Dal Bianco, Chiara & Weber, Guglielmo, 2017. "Retirement and cognitive decline. A longitudinal analysis using SHARE data," Journal of Health Economics, Elsevier, vol. 56(C), pages 113-125.
    • Handle: RePEc:eee:jhecon:v:56:y:2017:i:c:p:113-125
    DOI: 10.1016/j.jhealeco.2017.09.003
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    More about this item

    Keywords

    Ageing; Cognition; Retirement; Instrumental variable estimation; SHARE;
    All these keywords.

    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
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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