---
_id: '46540'
abstract:
- lang: eng
  text: 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:
- first_name: Valentin
  full_name: Schiele, Valentin
  id: '53779'
  last_name: Schiele
- first_name: Hendrik
  full_name: Schmitz, Hendrik
  id: '48879'
  last_name: Schmitz
citation:
  ama: 'Schiele V, Schmitz H. <i>Understanding Cognitive Decline in Older Ages: The
    Role of Health Shocks</i>. Vol 919. RWI - Leibniz-Institut für Wirtschaftsforschung,
    Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen;
    2021.'
  apa: 'Schiele, V., &#38; Schmitz, H. (2021). <i>Understanding cognitive decline
    in older ages: The role of health shocks</i> (Vol. 919). RWI - Leibniz-Institut
    für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University
    of Duisburg-Essen.'
  bibtex: '@book{Schiele_Schmitz_2021, series={ Ruhr Economic Papers}, title={Understanding
    cognitive decline in older ages: The role of health shocks}, volume={919}, publisher={RWI
    - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund
    University, University of Duisburg-Essen}, author={Schiele, Valentin and Schmitz,
    Hendrik}, year={2021}, collection={ Ruhr Economic Papers} }'
  chicago: 'Schiele, Valentin, and Hendrik Schmitz. <i>Understanding Cognitive Decline
    in Older Ages: The Role of Health Shocks</i>. Vol. 919.  Ruhr Economic Papers.
    RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund
    University, University of Duisburg-Essen, 2021.'
  ieee: 'V. Schiele and H. Schmitz, <i>Understanding cognitive decline in older ages:
    The role of health shocks</i>, vol. 919. RWI - Leibniz-Institut für Wirtschaftsforschung,
    Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen,
    2021.'
  mla: 'Schiele, Valentin, and Hendrik Schmitz. <i>Understanding Cognitive Decline
    in Older Ages: The Role of Health Shocks</i>. RWI - Leibniz-Institut für Wirtschaftsforschung,
    Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen,
    2021.'
  short: 'V. Schiele, H. Schmitz, Understanding Cognitive Decline in Older Ages: The
    Role of Health Shocks, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University
    Bochum, TU Dortmund University, University of Duisburg-Essen, 2021.'
date_created: 2023-08-16T10:47:00Z
date_updated: 2023-08-20T17:53:54Z
department:
- _id: '281'
- _id: '475'
intvolume: '       919'
keyword:
- Cognitive decline
- health shocks
- retirement
- education
- event study
language:
- iso: eng
publisher: RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum,
  TU Dortmund University, University of Duisburg-Essen
series_title: ' Ruhr Economic Papers'
status: public
title: 'Understanding cognitive decline in older ages: The role of health shocks'
type: working_paper
user_id: '53779'
volume: 919
year: '2021'
...
---
_id: '46537'
abstract:
- lang: eng
  text: '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:
- first_name: Hendrik
  full_name: Schmitz, Hendrik
  id: '48879'
  last_name: Schmitz
- first_name: Matthias
  full_name: Westphal, Matthias
  id: '64661'
  last_name: Westphal
citation:
  ama: Schmitz H, Westphal M. <i>The Dynamic and Heterogeneous Effects of Retirement
    on Cognitive Decline</i>. Vol 918. RWI - Leibniz-Institut für Wirtschaftsforschung,
    Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen;
    2021.
  apa: Schmitz, H., &#38; Westphal, M. (2021). <i>The dynamic and heterogeneous effects
    of retirement on cognitive decline</i> (Vol. 918). RWI - Leibniz-Institut für
    Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University
    of Duisburg-Essen.
  bibtex: '@book{Schmitz_Westphal_2021, series={ Ruhr Economic Papers}, title={The
    dynamic and heterogeneous effects of retirement on cognitive decline}, volume={918},
    publisher={RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum,
    TU Dortmund University, University of Duisburg-Essen}, author={Schmitz, Hendrik
    and Westphal, Matthias}, year={2021}, collection={ Ruhr Economic Papers} }'
  chicago: Schmitz, Hendrik, and Matthias Westphal. <i>The Dynamic and Heterogeneous
    Effects of Retirement on Cognitive Decline</i>. Vol. 918.  Ruhr Economic Papers.
    RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund
    University, University of Duisburg-Essen, 2021.
  ieee: H. Schmitz and M. Westphal, <i>The dynamic and heterogeneous effects of retirement
    on cognitive decline</i>, vol. 918. RWI - Leibniz-Institut für Wirtschaftsforschung,
    Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen,
    2021.
  mla: Schmitz, Hendrik, and Matthias Westphal. <i>The Dynamic and Heterogeneous Effects
    of Retirement on Cognitive Decline</i>. RWI - Leibniz-Institut für Wirtschaftsforschung,
    Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen,
    2021.
  short: H. Schmitz, M. Westphal, The Dynamic and Heterogeneous Effects of Retirement
    on Cognitive Decline, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University
    Bochum, TU Dortmund University, University of Duisburg-Essen, 2021.
date_created: 2023-08-16T10:02:17Z
date_updated: 2023-08-20T17:54:49Z
department:
- _id: '281'
- _id: '475'
intvolume: '       918'
keyword:
- Cognitive abilities
- retirement
- event study
- marginal treatment effects
language:
- iso: eng
publisher: RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum,
  TU Dortmund University, University of Duisburg-Essen
series_title: ' Ruhr Economic Papers'
status: public
title: The dynamic and heterogeneous effects of retirement on cognitive decline
type: working_paper
user_id: '53779'
volume: 918
year: '2021'
...