Does Retirement Affect Cognitive Functioning?

46 Pages Posted: 24 Dec 2010

See all articles by Eric Bonsang

Eric Bonsang

ROA; Netspar

Stephane Adam

University of Liege

Sergio Perelman

University of Liege - Department of Economics

Date Written: November 1, 2010

Abstract

This paper analyzes the effect of retirement on cognitive functioning using two large scale surveys. First, a longitudinal survey among older Americans allows controlling for individual heterogeneity and endogeneity of the retirement decision. Second, a cross-national European survey allows identifying the causal effect of retirement on cognition by using the cross-country differences in the age-pattern of retirement. The results highlight in both cases a significant negative and quantitatively comparable effect. It suggests that promoting labor force participation of older workers could delay cognitive decline, and thus the occurrence of associated impairments at older age.

Keywords: Aging, Cognition, Retirement, Social Security

JEL Classification: I12, J14, J24, J26

Suggested Citation

Bonsang, Eric and Adam, Stephane and Perelman, Sergio, Does Retirement Affect Cognitive Functioning? (November 1, 2010). Netspar Discussion Paper No. 11/2010-069. Available at SSRN: https://ssrn.com/abstract=1730225 or http://dx.doi.org/10.2139/ssrn.1730225

Eric Bonsang (Contact Author)

ROA ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Stephane Adam

University of Liege ( email )

B-4000 Liege
Belgium

Sergio Perelman

University of Liege - Department of Economics ( email )

7 Boulevard du Rectorat
Batiment B31
4000 Liege
Belgium
+32 4 156 3098 (Phone)
+32 4 156 2958 (Fax)

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