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Mental retirement and schooling

Bingley, Paul and Martinello, Alessandro LU (2013) In European Economic Review 63. p.292-298
Abstract
We assess the validity of differences in eligibility ages for early and old age pension benefits as instruments for estimating the effect of retirement on cognitive functioning. Because differences in eligibility ages across country and gender are correlated with differences in years of schooling, which affect cognitive functioning at old ages, they are invalid as instruments without controlling for schooling. We show by means of simulation and a replication study that unless the model incorporates schooling, the estimated effect of retirement is negatively biased. This explains a large part of the “mental retirement” effects which have recently been found.
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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Cognitive ability, Retirement , Schooling , Cross-country instruments, J26 , I12 , I20, C26
in
European Economic Review
volume
63
pages
292 - 298
publisher
Elsevier
external identifiers
  • scopus:84883652807
ISSN
1873-572X
DOI
10.1016/j.euroecorev.2013.01.004
language
English
LU publication?
no
id
407a0b56-7480-4e7c-af34-572f66f7834d
date added to LUP
2016-06-17 10:25:50
date last changed
2017-08-13 04:55:47
@article{407a0b56-7480-4e7c-af34-572f66f7834d,
  abstract     = {We assess the validity of differences in eligibility ages for early and old age pension benefits as instruments for estimating the effect of retirement on cognitive functioning. Because differences in eligibility ages across country and gender are correlated with differences in years of schooling, which affect cognitive functioning at old ages, they are invalid as instruments without controlling for schooling. We show by means of simulation and a replication study that unless the model incorporates schooling, the estimated effect of retirement is negatively biased. This explains a large part of the “mental retirement” effects which have recently been found.},
  author       = {Bingley, Paul and Martinello, Alessandro},
  issn         = {1873-572X},
  keyword      = {Cognitive ability,Retirement ,Schooling ,Cross-country instruments,J26 ,I12 ,I20,C26},
  language     = {eng},
  pages        = {292--298},
  publisher    = {Elsevier},
  series       = {European Economic Review},
  title        = {Mental retirement and schooling},
  url          = {http://dx.doi.org/10.1016/j.euroecorev.2013.01.004},
  volume       = {63},
  year         = {2013},
}