Estimating the small area effects of austerity measures in the UK

The major distributional effect is caused by gender neutral financing and benefits in combination with considerably higher life expectancy for women than for men. These important characteristics are not much affected by the reform of the public pension system in Norway that started to be implemented from 2011. A traditional approach to analysing distributional aspects of tax and pension systems is to calculate taxes paid and benefits received for persons with different characteristics. In analysing gender aspects of the Norwegian pension system people use the dynamic microsimulation model MOSART documented in Fredriksen. In this model, projections for demographic development and labour supply are combined with different rules for accumulation of pension entitlements, an actuarial design and adjustments for increasing life expectancy. In addition to the direct effects from the reform of the Norwegian public pension system, plausible labour supply assumptions are implemented exogenously in the model.