Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267479 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15742
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Economists have mainly focused on human capital accumulation, rather than on the causes and consequences of human capital depreciation in late adulthood. To investigate how human capital depreciates over the life cycle, we examine how a newly introduced pension program, the National Rural Pension Scheme, affects cognitive performance in rural China. We find significant adverse effects of access to pension benefits on cognitive functioning among the elderly. We detect the most substantial impact of the program on delayed recall, a cognition measure linked to the onset of dementia. In terms of mechanisms, we find that cognitive deterioration in late adulthood is mediated by a substantial reduction in social engagement, volunteering, and activities fostering mental acuity.
Subjects: 
middleincome countries
cognition
cognitive functioning
human capital
life cycle
LMICs
developing countries
JEL: 
H55
J24
I31
O12
J26
J14
H75
Document Type: 
Working Paper

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