Discussion Papers no. 524

Microsimulating effects on government expenditures, labour supply incentives and benefit distribution

Pension reform in Norway

A much higher old-age dependency ratio, together with more generous pension benefits, will lead to a substantial increase in the future public pension expenditures burden in Norway. A pension reform implemented from 2010 will imply a shift to a quasi-actuarial system, seeking to neutralise the expenditure effect of further growth in life expectancy and strengthen ties between former earnings and pension benefits. Labour supply will be stimulated by lowering implicit tax rates and by aligning the social and private costs of early retirement. Using a large dynamic microsimulation model we find that the reform will stimulate labour supply and reduce the future tax burden, but also increase inequality in the benefits received by old age pensioners.

Om publikasjonen

Tittel

Pension reform in Norway. Microsimulating effects on government expenditures, labour supply incentives and benefit distribution

Ansvarlige

Kyrre Stensnes, Nils Martin Stølen

Serie og -nummer

Discussion Papers no. 524

Utgiver

Statistics Norway

Emne

Discussion Papers

Antall sider

25

Målform

Engelsk

Om 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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