Do pension benefits accelerate cognitive decline? Evidence from rural China / Plamen Nikolov (State University of New York (Binghamton), Harvard Institute for Quantitative Social Science and IZA), Alan Adelman (State University of New York (Binghamton)) ; IZA Institute of Labor Economics
VerfasserNikolov, Plamen ; Adelman, Alan
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, August 2019
Elektronische Ressource
Umfang1 Online-Ressource (35, 5, A-2, B-4 Seiten) : Karten
SerieDiscussion paper ; no. 12524
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Do pension benefits accelerate cognitive decline? Evidence from rural China [1.81 mb]
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Higher life expectancy and rapidly aging populations have led to the introduction of pension programs in developing countries in the last two decades. Using the introduction of a new public policy in China, we estimate the effects of pension benefits on individual cognition, measured by episodic memory and intact mental status, among individuals ages 60 and above. We find large and significant negative effects of the provision of pension benefits on cognitive functioning among the elderly. We find the largest effect of the program on delayed recall, a measure implicated in neurobiological research as an important predictor of the onset of dementia. We show that the program leads to more negative impacts among the female sample. Our findings support the mental retirement hypothesis that decreased mental activity results in atrophy of cognitive skills. We show that retirement plays a significant role in explaining cognitive decline at older ages.