We investigate whether older people correctly perceive their own cognitive decline, and the potential financial consequences of misperception. First, we document the fact that older people tend to underestimate their cognitive decline. We then show that those who experienced a severe cognitive...

In this paper, we examine which dimensions of cognitive ability are most predictive of key financial outcomes and what pathways could account for the observed relationships. We begin by proposing a conceptual framework that accounts for several plausible "channels" through which differences in...

In this paper, we examine which dimensions of cognitive ability are most predictive of key financial outcomes and what pathways could account for the observed relationships. We begin by proposing a conceptual framework that accounts for several plausible "channels" through which dif- ferences in...

We use data on international chess tournaments to study the relationship between age and mental productivity in a brain-intensive profession. We show that less talented players tend to leave the game in the earliest phases of their career. When the effects of age on productivity vary with...

Using longitudinal employer-employee data spanning over a 22-year period, we compare age-wage and age-productivity profiles and find that productivity increases until the age range of 50-54, whereas wages peak around the age 40-44. At younger ages, wages increase in line with productivity gains...

We exploit the change to the minimum school-leaving age in the United Kingdom from 14 to 15 using a regression discontinuity design to evaluate the causal effect of one more year of education on cognitive abilities at older ages. We find a large and significant effect of this reform on males'...