The Norwegian NDC Scheme: Balancing Risk Sharing and Redistribution
Link to article:
Stølen, N.M., Fredriksen, D., Hernæs, E., Holmøy, E.
Discussion Paper No. 1905, World Bank Group
The main goals of reforming the Norwegian old-age pension system toward nonfinancial defined contributions (NDC) in 2011 were to improve long-run fiscal sustainability and labor supply incentives. Maintaining much of the redistributive effects of the former public pension system was also an important concern. Econometric analyses reveal the 2011 reform’s significant effects on postponing retirement. Results from a dynamic microsimulation model show that the reform is expected to have substantial effects on old-age pension expenditures in the long run without any large negative distributional effects. Macroeconomic analyses indicate that the reform is likely to make a great fiscal impact in the long run, and higher employment plays an important role in this aspect.
Project:Oppdragsgiver: Norges Forskningsråd
Oppdragsgivers prosjektnr.: 238203
Frisch prosjekt: 1177 - Understanding retirement decisions
Oppdragsgiver: Norges Forskningsråd
Oppdragsgivers prosjektnr.: 270875
Frisch prosjekt: 1673 - Inequality and social sustainability of the Norwegian pensjon system after the reform