Short-Term Impact of Income on Cognitive Function: Evidence From a Sample of Mexican Older Adults

Objective:To estimate the short-run (6-9 months) impact and mediating mechanisms of an intervention providing supplemental income to individuals 70 years and above from the Mexican state of Yucatan on markers of cognitive functioning (immediate and delayed word recall).Method:Regression-adjusted difference-in-differences (DID) analysis using baseline and follow-up data collected at treatment and control sites from an experiment.Results:The intervention improved immediate and delayed recall scores for men and women. We found no effects on diagnoses of dementia risk factors, depression, and activities of daily living (ADLs). The intervention increased health care use and decreased anemia for men and women, and improved food availability for men. The effects on cognitive outcomes were mediated by health care use for both men and women, and food availability for men.Discussion:In low- and middle-income countries, supplemental income for elderly may be an effective strategy to improve cognitive function by increasing food security and health care utilization.