@techreport{46540,
  abstract     = {{Individual cognitive functioning declines over time. We seek to understand how adverse physical health shocks in older ages contribute to this development. By use of event-study methods and data from the USA, England and several countries in Continental Europe we find evidence that health shocks lead to an immediate and persistent decline in cognitive functioning. This robust finding holds in all regions representing different health insurance systems and seems to be independent of underlying individual demographic characteristics such as sex and age. We also ask whether variables that are susceptible to policy action can reduce the negative consequences of a health shock. Our results suggest that neither compulsory education nor retirement regulations moderate the effects, thus emphasizing the importance of maintaining good physical health in old age for cognitive functioning.}},
  author       = {{Schiele, Valentin and Schmitz, Hendrik}},
  keywords     = {{Cognitive decline, health shocks, retirement, education, event study}},
  publisher    = {{RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen}},
  title        = {{{Understanding cognitive decline in older ages: The role of health shocks}}},
  volume       = {{919}},
  year         = {{2021}},
}

@techreport{46537,
  abstract     = {{We study effects of retirement on cognitive abilities (up to ten years after retirement) using data from 21 countries in Continental Europe, England, and the US, and exploiting early-retirement thresholds for identification. For this purpose, combines event-study estimations with the marginal treatment effect framework to allow for effect heterogeneity. This helps to decompose event-study estimates into true medium-run effects of retirement and effects driven by differential retirement preferences. Our results suggest considerable negative effects of retirement on cognitive abilities. We also detect substantial effect heterogeneity: Those who retire as early as possible are not affected while those who retire later exhibit negative effects.}},
  author       = {{Schmitz, Hendrik and Westphal, Matthias}},
  keywords     = {{Cognitive abilities, retirement, event study, marginal treatment effects}},
  publisher    = {{RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen}},
  title        = {{{The dynamic and heterogeneous effects of retirement on cognitive decline}}},
  volume       = {{918}},
  year         = {{2021}},
}