Discussion Papers no. 821

Fiscal effects of the Norwegian pension reform – A micro-macro assessment

The main goal of the Norwegian pension reform of 2011 is to improve long run fiscal sustainability, not least through stronger labour supply incentives.

The main goal of the Norwegian pension reform of 2011 is to improve long run fiscal sustainability, not least through stronger labour supply incentives. We assess to what extent the reform is likely to live up to these intentions. To this end we combine a dynamic microsimulation model, which includes a complete description of the Norwegian population and the pension system, with CGE-modelling of the effects on all government revenues and expenditures. We find that the reform is likely to make a great fiscal impact in the long run, and higher employment plays an important role in this respect. However, the pension reform alone is far from enough to solve the Norwegians long run problem of fiscal sustainability.

About the publication

Title

Fiscal effects of the Norwegian pension reform – A micro-macro assessment

Authors

Erling Holmøy, Nils Martin Stølen

Series and number

Discussion Papers no. 821

Publisher

Statistics Norway

Topic

Discussion Papers

ISSN

1892-753X

Number of pages

42

Language

English

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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