Title: The Impact of Retirement on Cognitive Functioning: Evidence from Urban China
Speaker:Hong Liu (co-authored with Xiaoyan Lei)
Abstract: This paper aims at examining the causal effect of retirement on cognitive functioning using the data from the China Health and Retirement Longitudinal Study. We control for potentially confounding age patterns of cognitive decline and correct for endogenous bias by exploiting the official retirement ages as exogenous instruments for individual retirement status. We find that retirement has a positive effect on cognitive functioning for men but a negative effect on cognitive function for women. We explore the underlying features of the retirement-cognition mechanism.
First, the beneficial effects of retirement are concentrated among men with a middle school education and above. Second, we show that the blue-collar male workers are likely to improve their cognitive functioning at retirement, while that is not the case the white-collar male worker. It indicates that relative efficiency of cognitive repair on and off the job is an important factor behind the impact of retirement on cognitive ability. Third, we also provide evidence that the blue-collar male workers are more likely to have social interaction and intellectually stimulating activities at retirement.
About Hong Liu: Hong Liu is professor at China Economics and Management Academy, Central University of Finance and Economics. She obtained her PhD degree from Stony Brook University, SUNY. She specializes in Health Economics, Labor Economics and Applied Microeconomics.
Date:Oct, 20th, 2016
Location:Room 608, Academic Hall, CUFE