Suchergebnisse

Abstract
Given that economic growth is associated with increased life expectancy, declines in cognitive ability among the elder is a critical problem across the developed world. In this paper, we analyze the causal effect of the death of a spouse on the surviving spouse's cognitive ability using the fixed effect model. The reliability of the estimates is enhanced by robustness checks, such as an event study model, to attend to potential threats to identification. Results show that, on average, spousal loss significantly reduces the cognitive functioning of the surviving spouse. We also study heterogeneity in the effect of spousal loss, finding that co-residing with children greatly mitigates the negative effect of bereavement.