[en] This paper analyzes the effect of retirement on cognitive functioning using two large scale
surveys. On the one hand the HRS, a longitudinal survey among individuals aged 50+ living
in the United States, allows us to control for individual heterogeneity and endogeneity of
the retirement decision by using the eligibility age for Social Security as an instrument. On
the other hand, a comparable international European survey, SHARE, allows us to identify
the causal effect of retirement on cognitive functioning 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 of retirement on cognitive functioning. Our
results suggest that promoting labor force participation of older workers is not only
desirable to insure the viability of retirement schemes, but it could also delay cognitive
decline, and thus the occurrence of associated impairments at older age.
Disciplines :
Geriatrics Economic systems & public economics Theoretical & cognitive psychology
Author, co-author :
Bonsang, Eric
Adam, Stéphane ; Université de Liège - ULiège > Département de personne et société > Psychologie de la sénescence
Perelman, Sergio ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie publique appliquée
