cepr.org
Use it or lose it: How cognitive skills change with age
Cognitive skills are commonly assumed to begin deteriorating from the age of 30, which could pose a significant challenge for rapidly ageing populations. But this assumption relies largely on cross-sectional data that cannot distinguish between ageing patterns and cohort differences. Using German longitudinal data, this column finds that skills, on average, increase markedly into one’s 40s before decreasing slightly in literacy and more severely in numeracy. In addition, skills decline at older ages only for those with below-average skill usage, outlining a clear policy pathway for avoiding skill declines.