Bingley, Paul; Martinello, Alessandro - In: European Economic Review 63 (2013) C, pp. 292-298
are correlated with differences in years of schooling, which affect cognitive functioning at old ages, they are invalid as … instruments without controlling for schooling. We show by means of simulation and a replication study that unless the model … incorporates schooling, the estimated effect of retirement is negatively biased. This explains a large part of the “mental …