The Impact of Social Security Income on Cognitive Function at Older Ages

TitleThe Impact of Social Security Income on Cognitive Function at Older Ages
Publication TypeJournal Article
Year of Publication2015
AuthorsAyyagari, P, Frisvold, D
JournalAmerican Journal of Health Economics
KeywordsCognition, cognitive function, Social Security, Social Security Benefits
Abstract

Prior literature has documented a positive association between income and cognitive function at older ages, however, the extent to which this association represents causal effects is unknown. In this study, we use an exogenous change in Social Security income due to amendments to the Social Security Act in the 1970s to identify the causal impact of Social Security income on cognitive function of elderly individuals. We find that higher benefits led to significant improvements in cognitive function and that these improvements in cognition were clinically meaningful. Our results suggest that interventions even at advanced ages can slow the rate of decline in cognitive function.

URLhttp://www.nber.org/papers/w21484
DOI10.3386/w21484
Citation KeyNBERw21484