We study the relationship between education and cognitive functioning at older ages by exploiting compulsory schooling … of Health, Aging and Retirement in Europe (SHARE), we assess the causal effect of education on old-age memory, fluency …, numeracy, orientation and dementia. We find a positive impact of schooling on memory. One year of education increases the …

insurance against unemployment caused by labor market frictions and hence increases the incentives for education. We show within … a matching model that reducing the start-up costs for new firms results in higher take-up rates of education. It also …