Basic Old Age Pension and the Cognitive ability of the Elderly

Abstract

I estimate the impact of Basic Old Age Pension (BOAP) to seniors on cognitive

ability. I use individual level elderly data including the pre and post period

of the BOAP (2006-2014). Although crowd out of child transfer occurs, the net

effect of pension increases the cognitive ability of the elderly. The net impact of

BOAP on cognitive ability of the elderly is analogous to the 71.3 % difference of

cognitive ability by 2nd and 1st quantile of households in the age group of 65 to

74. The BOAP enhanced the receiving group 2.415 age gap of cognitive ability

during year 2008-2014.