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Effects of demographic development, labour supply and pension reforms on the future pension burden

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Abstract

A much higher old-age dependency ratio together with more generous pension benefits will lead to a substantial increase in the future pension burden in Norway. The challenges of financing the increasing pension expenditures depend on the development in demographic characteristics like fertility, mortality and immigration, as well as characteristics affecting supply of labour, like education, disability, retirement age, participation rates and part time work (especially for women), and the design of the pension system. By use of a dynamic micro simulation model the paper analyses and projects how these factors will affect the expenditures and financing of the Norwegian National Insurance Scheme. The model also allows analyses of distributional effects of pension reforms.

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  • Dennis Fredriksen & Nils Martin Stølen, 2005. "Effects of demographic development, labour supply and pension reforms on the future pension burden," Discussion Papers 418, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:418
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    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp418.pdf
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    Cited by:

    1. Mr. Daniel Leigh & Mr. Etibar Jafarov, 2007. "Alternative Fiscal Rules for Norway," IMF Working Papers 2007/241, International Monetary Fund.

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    More about this item

    Keywords

    Social security; pension expenditures; demographic forecasts; retirement;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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