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The Effect of Spousal Loss on the Cognitive Ability of the Elder

Author

Listed:
  • Lee Hwanoong

    (Korea Institute of Public Finance, 336, Sicheong-Daero, Sejong-si, Korea)

  • Ko Changsu

    (Korea Institute of Public Finance, 336, Sicheong-Daero, Sejong-si, Korea)

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.

Suggested Citation

  • Lee Hwanoong & Ko Changsu, 2022. "The Effect of Spousal Loss on the Cognitive Ability of the Elder," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 22(3), pages 475-525, July.
    • Handle: RePEc:bpj:bejeap:v:22:y:2022:i:3:p:475-525:n:7
    DOI: 10.1515/bejeap-2021-0201
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    More about this item

    Keywords

    cognitive ability; dementia; bereavement; household composition; Korean Longitudinal Study of Aging (KLoSA);
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J1 - Labor and Demographic Economics - - Demographic Economics

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