Affiliation:
1. Statistics Norway Oslo Norway
Abstract
AbstractThis paper examines the substitution between pension wealth and household saving. To identify the effect of reductions in social security pension wealth on household saving, we utilize variations in changes in social security pension wealth induced by Norway's 2011 reform across different cohorts, time periods, and sectors. Our study focuses on saving behavior of individuals between ages 57–61, and we find that the annual saving rate increased by around 1.4 percentage points after the reform. When considering the overall life‐cycle changes in household saving, this corresponds to a crowd‐out effect of about 50 percent of the total loss in pension wealth.This article is protected by copyright. All rights reserved.
Subject
Economics and Econometrics