The Norwegian NDC Scheme
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.
| Main Authors: | , , , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019-04
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| Subjects: | PENSION REFORM, EARLY RETIREMENT, LABOR SUPPLY, INCOME DISTRIBUTION, FISCAL SUSTAINABILITY, |
| Online Access: | http://documents.worldbank.org/curated/en/956771556879609873/The-Norwegian-NDC-Scheme-Balancing-Risk-Sharing-and-Redistribution https://hdl.handle.net/10986/31629 |
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| Summary: | 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. |
|---|