The Norwegian NDC Scheme: Balancing Risk Sharing and Redistribution

Nils Martin Stølen, Dennis Fredriksen, Erik Hernaes () and Erling Holmøy

No 136552, Social Protection Discussion Papers and Notes from The World Bank

Abstract: 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.

Keywords: Pensions&Retirement Systems; Population&Development; Access of Poor to Social Services; Economic Assistance; Services&Transfers to Poor; Disability; Rural Labor Markets; Labor Markets; Macro-Fiscal Policy; Economic Adjustment and Lending; Public Finance Decentralization and Poverty Reduction; Public Sector Economics (search for similar items in EconPapers)
Date: 2019-04-01
New Economics Papers: this item is included in nep-age and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:hdnspu:136552

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