title: Does retirement affect cognitive functioning?
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.
authors.affiliation: Research Centre for Education and the Labour Market (ROA), Maastricht University, P.O. Box 616, NL-6200 MD Maastricht, The Netherlands. e.bonsang@maastrichtuniversity.nl
authors.forename: Eric
authors.initials: E
authors.lastname: Bonsang
authors.forename: Stéphane
authors.initials: S
authors.lastname: Adam
authors.forename: Sergio
authors.initials: S
authors.lastname: Perelman
mesh_terms: D000368:Aged; D000375:Aging / Q000502:physiology*; D003071:Cognition / Q000502:physiology*; D036262:Empirical Research; D006306:Health Surveys; D006801:Humans; D008137:Longitudinal Studies; D008875:Middle Aged; D012179:Retirement / Q000523:psychology*; D012943:Social Security; D014481:United States