Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 19/2008: It Ain't Necessariy So

Dag S. Holen
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Dag S. Holen: Ragnar Frisch Centre for Economic Research

Abstract: There are currently about 300,000 individuals receiving disability pension in Norway. A key question regarding the evolvement of the number of disabled workers is if the growth is related to the growth in the generosity of the pension system. This paper presents statistics on disability pensioners 1992-2001 and argues measurements of the generosity of the system has to be done with caution for several reasons. There is no clear link from the disablement process to the inflow of new disability pensioners. Further, I show that the ratio of disability pension to labor income vary with different definitions of the pension and income level.

Keywords: Pension; disability pension

JEL-codes: A10

48 pages, March 28, 2007

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