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The Future Burden of Public Pension Benefits A Microsimulation Study

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Abstract

The microsimulation model MOSART is used to analyse the long run development in disability and old-age pensions covered by the Norwegian National Insurance System. The number of pensioners will increase relative to the number of workers, leading to a growing tax burden on future generations. It is found that among those born before the year 2000, early generations possess a larger pension wealth (the discounted value of payments and received benefits) as a per cent of life time labour income than later generations. The paper discusses changes in the rules for determining pension benefits and the consequences of going from a pay-as-you-go system to a funded system.

Suggested Citation

  • Leif Andreassen & Dennis Fredriksen & Olav Ljones, 1994. "The Future Burden of Public Pension Benefits A Microsimulation Study," Discussion Papers 115, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:115
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    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp_115.pdf
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    More about this item

    Keywords

    Disability; demography; microsimulation; pension benefits.;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • J1 - Labor and Demographic Economics - - Demographic Economics

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