Mosca, Irene and Wright, Robert E. (2018) The Effect of Retirement on Cognition: Evidence from the Irish Marriage Bar. Demography, 55 (4). pp. 1317-1341. ISSN 0070-3370
Text
Mosca_Wright_EffectOfRetirementOnCognition_Demography
Download (1MB)
Mosca_Wright_EffectOfRetirementOnCognition_Demography
Download (1MB)
Abstract
This study empirically investigates the relationship between retirement du-
ration and cognition among older Irish women using microdata collected in the third
wave of The Irish Longitudinal Study on Ageing. Ordinary least squares (OLS)
regression estimates indicate that the longer an individual has been retired, the lower
the cognitive functioning, with other factors thought to affect cognition held constant
(e.g., age, education, and early-life socioeconomic conditions). However, retirement is
potentially endogenous with respect to cognition because cognition may affect deci-
sions relating to retiring. If so, the OLS estimates will be biased. To test for this
possibility, instrumental variable (IV) estimation is used. This method requires an IV
that is highly correlated with retirement duration but not correlated with cognition. The
instrument used in this study is based on the so-called marriage bar, the legal require-
ment that women leave paid employment upon getting married, which took effect in
Ireland in the 1930s and was abolished only in the 1970s. The IV regression estimates,
along with formal statistical tests, provide no evidence in support of the view that
cognition affects retirement decisions. The finding of a small negative effect of
retirement duration on cognition is robust to alternative empirical specifications. These
findings are discussed in the wider context of the effects of work-like and work-related
activities on cognition.
Item Type: | Article |
---|---|
Keywords: | Cognition; Aging; Working; Retirement; Women; |
Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
Item ID: | 10455 |
Identification Number: | 10.1007/s13524-018-0682-7 |
Depositing User: | Irene Mosca |
Date Deposited: | 24 Jan 2019 12:18 |
Journal or Publication Title: | Demography |
Publisher: | Springer VS |
Refereed: | No |
Related URLs: | |
URI: | https://mural.maynoothuniversity.ie/id/eprint/10455 |
Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
Repository Staff Only (login required)
Downloads
Downloads per month over past year