Skip to main content
SpringerLink
Log in

The Norwegian Unemployment – Disability Paradox

  • Chapter
  • First Online:
Erwerbsverlauf und sozialer Schutz in Europa

Abstract

Seen from an international perspective, Norway has high employment rates and low unemployment rates among its older population. On the other hand, the share of persons aged 50–64 on disability pension is quite high compared to other European countries. Studies also show that a large proportion of disability insurance claims in Norway can be directly attributed to job displacement and other adverse shocks to employment opportunities. This indicates that there might be some hidden unemployment among Norway’s older population. This article describes and discusses this unemployment – disability paradox in light of relevant legislation, policies and recent research.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 109.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 139.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    CSP is a resource centre working on encouraging and developing appropriate policies for older workers in the labour market by coordinating and facilitating cooperation between the authorities, enterprises, the social partners and professional organisations on issues pertaining to older workers.

  2. 2.

    An employee earns an entitlement to a maximum pension after 30 years in a full-time position. They can then get a retirement pension that represents 66 % of their final salary. This is before the adjustment for life expectancy. However, the new pension rules guarantee 66 % before the adjustment for life expectancy for those born before 1959. The new rules for those born after 1958 are not yet established.

  3. 3.

    The yearly minimum pension level (garantipensjonen) is, as per 01.05.2016, equal to NOK 179.748 (approximately 20.000 Euro).

  4. 4.

    However, they have the opportunity to continue working in the private sector without any earnings test.

  5. 5.

    This question was inspired by a study by Conen et al. (2012).

References

  • Ahmed AA, Andersson L, Hammarstedt M (2011) Does age matter for employability? A field experiment on ageing in the Swedish labour market. Appl Econ Lett 19(4):403–406

    Article  Google Scholar 

  • Andreev L (2016) Hvor lenge er folk arbeidsledige. Arbeid & Velferd, nr. 2 2016. The Welfare and Labour Administration, Oslo

    Google Scholar 

  • Barth E, Moene K, Wallerstein M (2003) Likhet under press: utfordringer for den skandinaviske fordelingsmodellen. Gyldendal, Oslo

    Google Scholar 

  • Berg SL, Bjørnstad R, Bjøru EC, Eggen FW, Jordfald B, Norberg-Schulz M (2016) Innvandrersysselsetting og konsekvenser for norske arbeidere. R5-2016. Senter for lønnsdannelse, Oslo

    Google Scholar 

  • Boeri T, Garibaldi P (2007) Two tier reforms of employment protection: A honeymoon effect? Econ J 117(521):F357–F385

    Article  Google Scholar 

  • Bråthen M, Grambo A-C (2009) Sysselsettingseffekten av endrede regler for alderspensjon for 67-åringer. Arbeid & Velferd 2009(2). Norwegian Labour and Welfare Administration, Oslo

    Google Scholar 

  • Bratsberg B, Fevang E, Røed K (2013) Job loss and disability insurance. Labour Econ 24:137–150

    Article  Google Scholar 

  • Brinch CN, Erik Hernæs E, Jia Z (2012) Labor supply on the eve of retirement. Disparate effects of immediate and postponed rewards to working. Discussion Papers No. 698. Statistics Norway, Research Department, Oslo

    Google Scholar 

  • Conen WS, Van Dalen HP, Henkens CJIM (2012) Ageing and employers' perceptions of labour costs and productivity: a survey among European employers. Int J Manpower 33(6):629–647

    Article  Google Scholar 

  • Dalen E (2016a) Norsk Seniorpolitisk Barometer 2016. Kommentarrapport. YRKESAKTIVE I ARBEIDSLIVET. 6 October 2016. Ipsos, Oslo

    Google Scholar 

  • Dalen E (2016b) Norsk Seniorpolitisk Barometer 2016. Kommentarrapport. LEDERE I ARBEIDSLIVET. 6 October 2016. Ipsos, Oslo

    Google Scholar 

  • Dahl EH, Lien OC (2013) Pensjonsreformen – flere eldre i arbeid. Arbeid og Velferd 2013(1):58–70

    Google Scholar 

  • Due JJ, Madsen JS (2008) The Danish Model of industrial relations: Erosion or renewal? J Ind Relat 50(3):513–529

    Article  Google Scholar 

  • Ellingsen J (2016) Utviklingen i uføretrygd per 31. desember 2015. Notat fra Arbeids- og velferdsdirektoratet/Statistikkseksjonen

    Google Scholar 

  • Esping-Andersen G (1990) The three worlds of welfare capitalism. Polity Press, Cambridge

    Google Scholar 

  • Eurostat (2016) Euro area unemployment at 10.0%. Eurostat newsrelease 217/2016 – 3 November 2016. Eurostat, Brüssel

    Google Scholar 

  • Furåker B, Nergaard K, Salonieni A (2014) Lock-in Patterns among Employees: A Nordic Comparison. Int J Comp Lab Law Ind Relat 30(4):453–458

    Google Scholar 

  • Galaasen AM, Sørbø J (2013) Pensjonsreformen og arbeidsledige over 60 år. [The pension reform and unemployment among 60+]. Arbeid og velferd, 2013 (1)72–82. Norwegian Labour and Welfare Administration, Oslo

    Google Scholar 

  • Goodin RE (2001) Work and Welfare: Towards a Post-Productivist Welfare Regime. Brit J Polit Sci 31(1):13–39

    Article  Google Scholar 

  • Haga O, Lien OC (2016) Forventa pensjoneringsalder og yrkesaktivitet [Expected retirement age and labour market participation]. Arbeid og velferd 2016(2):105–115. Norwegian Labour and Welfare Administration, Oslo

    Google Scholar 

  • Halvorsen B, Tägtström J (2013) A matter of health and job satisfaction. Seniors, work and retirement in the Nordic region. Nordic Council of Ministers, Copenhagen

    Book  Google Scholar 

  • Hasselhorn H-M, Apt W (2015) Understanding employment participation of older workers: Creating a knowledge base for future labour market challenges. Research Report. Federal Ministry of Labour and Social Affairs (BMAS) and Federal Institute for Occupational Safety and Health (BAuA). BMAS/BAuA, Berlin

    Google Scholar 

  • Hermansen Å (2014) Additional leave as the determinant of retirement timing—retaining older workers in Norway. NJWLS 4(4):89–108

    Article  Google Scholar 

  • Hermansen Å (2015) Retaining older workers: The effect of phased retirement on delaying early retirement. Nordic J Soc Res 6:44–67

    Article  Google Scholar 

  • Hermansen Å, Midtsundstad T (2015a) Retaining older workers – analysis of company surveys from 2005 and 2010. Int J Manpower 36(8):1227–1247. https://doi.org/10.1108/IJM-07-2014-0150

    Article  Google Scholar 

  • Hermansen Å, Midtsundstad T (2015b) The effect of retaining bonuses on early retirement – retaining older Norwegian workers. Paper presented at the 12th ESA Conference – Differences, Inequalities and Social Imagination, Praha, 25–28 August 2015

    Google Scholar 

  • Hernæs E, Markussen S, Piggott J, Røed K (2015) Pension Reform and Labor Supply: Flexibility vs. Prescription. IZA Discussion Paper No. 8812. Forschungsinstitut zur Zukunft der Arbeit, Bonn

    Google Scholar 

  • Kahn LM (2005) The Impact of Employment Protection Mandates on Demographic Temporary Employment Patterns: International Microeconomic Evidence. IZA Discussion Paper No. 1548 2005

    Google Scholar 

  • Kauttoet M, Heikkillä M, Hvinden B, Marklund S, Plough N (1999) Nordic Social Policy. Changing Welfare States. Routledge, London

    Google Scholar 

  • Korpi T (2001) Accumulating disadvantage: longitudinal analyses of unemployment and physical health in representative samples of the Swedish population. Eur Soc Rev 17(3):255–273

    Article  Google Scholar 

  • Lien OC (2014) Få bytter jobb etter fylte 50 år. Arbeid & Velferd 2014(1):37–50. Norwegian Labour and Welfare Administration, Oslo

    Google Scholar 

  • Løken E, Ta S (2009) Labour relations in Norway. Fafo-report 2009:33. Fafo Institute for Labour and Social Research, Oslo

    Google Scholar 

  • Lorentzen T, Løken E, Trygstad S (2006) Den nye staten: Omstillingens effekter på ansattes fravær og trygdemottak. Søkelys på arbeidsmarkedet 23(2):249–258

    Google Scholar 

  • Markussen S, Mykletun A, Røed K (2012) The case for presenteeism. J Public Econ 96(2012):959–972

    Article  Google Scholar 

  • Midtsundstad T (2002) AFP-pensjonisten: sliten–eller frisk og arbeidsfør? En analyse av tidlig pensjonering og bruk av AFP i privat sektor. [AFP retirees: Warned out – or healthy and fit for Work? Analysis of early exit on AFP in private sector]. Fafo-report 385. Fafo Institute for Labour and Social Research, Oslo

    Google Scholar 

  • Midtsundstad T (2005) Ikke nødvendigvis sliten … En analyse av AFP-pensjonering i staten. [Not necessarily warned-out. Analyses of early retirement among governmental employees]. Søkelys på arbeidslivet 22(2):217–232

    Google Scholar 

  • Midtsundstad T (2008) Virksomheten som sosialpolitisk aktør. [Companies as agents of social policy]. Tidsskrift for Velferdsforskning 22(1):17–33

    Google Scholar 

  • Midtsundstad T (2014) Voksende seniorengasjement i norsk arbeidsliv. En virksomhetsundersøkelse fra 2013. [A growing engagement in Age Management in Norwegian working life]. Fafo-report 2014: 30. Fafo Institute for Labour and Social Research, Oslo

    Google Scholar 

  • Midtsundstad T (2015) Tiltak for å holde på eldre arbeidstakere. In: Dale-Olsen H (ed) Norsk arbeidsliv i turbulente tider. Gyldendal Akademisk, Oslo

    Google Scholar 

  • Midtsundstad T (2016) Eksisterende kunnskap om seniormobilitet. In: Tofteng M (ed) Seniorers mobilitet på arbeidsmarkedet. Report nr. 50-2016. Samfunnsøkonomisk Analyse AS, Oslo

    Google Scholar 

  • Midtsundstad T, Bogen H (2011) Ulikt arbeid - ulike behov. Seniorpolitisk praksis i norsk arbeidsliv. [Different work – different needs. Age management practices in Norwegian working life]. Fafo-report 2011: 10. Fafo Institute for Labour and Social Research, Oslo

    Google Scholar 

  • Midtsundstad T, Bogen H (2014) Active ageing policies between individual needs and collective goods. A study of active ageing policies and practices in Norway. Nordic Working Life Studies, 4(2):139–158

    Article  Google Scholar 

  • Midtsundstad T, Nielsen RA (2014a) Arbeid og pensjon i kommunal sektor [Work and pension in the local governmental sector]. Fafo-report 2014:45. Fafo Institute for Labour and Social Research, Oslo

    Google Scholar 

  • Midtsundstad T, Nielsen RA (2014b) Do work-place initiated measures reduce sickness absence? Preventive measures and sickness absence among older workers in Norway. Scand J Public Health 42(2):207–214

    Article  Google Scholar 

  • Midtsundstad T, Nielsen RA (2016) Do workplace interventions reduce disability rates? Occup Med-C 66(9):691–697. https://doi.org/10.1093/occmed/kqw169

    Article  Google Scholar 

  • Midtsundstad T, Hermansen Å, Nielsen RA (2012a) Effects of companies' initiative to reduce early retirement among older workers. NJWLS 2(3):89–108

    Article  Google Scholar 

  • Midtsundstad T, Nielsen RA, Hermansen Å (2012b) Tilrettelegging og seniortiltak – påvirker det kommuneansattes sykefravær og tidligpensjonering? Søkelys på arbeidslivet 29(1–2):130–150

    Google Scholar 

  • Mukoyama T, Sahin A (2009) Why did the average duration of unemployment become so much longer? J Monetary Econ 56(2):200–209

    Article  Google Scholar 

  • Myklebø S (2011) Overgang til arbeid og aktivitet blant tidligere NAV-brukere. Report nr. 3 2011. The Norwegian Labour and Welfare Administration, Oslo

    Google Scholar 

  • Nielsen RA, Midtsundstad T (2016) Virker tiltakene? Effektanalyser av virksomhetsinitierte tiltak på ansattes sykefravær og uførepensjonering. Working-Paper 2016:12. Fafo Institute for Labour and Social Research, Oslo

    Google Scholar 

  • Nielsen RA, Norberg-Schulz Hagen M (2016) Mobiliteten faller over tid og med alder [The labour market mobility decreases over time and with age]. In: Tofteng M (ed) Seniorers mobilitet på arbeidsmarkedet, Report 50-2016. Samfunnsøkonomisk Analyse AS, Oslo

    Google Scholar 

  • OECD (2006) Live longer, work longer. OECD, Paris. http://dx.doi.org/10.1787/9789264035881-en

    Book  Google Scholar 

  • OECD (2011) Pensions at a Glance – retirement income systems in OECD and G20 countries. OECD, Paris

    Google Scholar 

  • OECD (2013) Ageing and Employment Policies: Norway 2013 Working Better with Age. OECD, Paris

    Google Scholar 

  • Official Norwegian Report (2000) Sykefravær og uførepensjonering, NOU 2000: 27, 15 September 2000. htps://www.regjeringen.no/no/dokumenter/nou-2000-27/id143251/

  • Rege M, Telle K, Votruba M (2009) The effect of plant downsizing on disability pension utilization. J Eur Econ Assoc 7(4):754–785

    Article  Google Scholar 

  • Røed K, Fevang E (2007) Organizational change, absenteeism, and welfare dependency. J Hum Resour 42(1):156–193

    Article  Google Scholar 

  • Schuring M, Budorf L, Kunst A, Mackenbach J (2007) The effects of ill health on entering and maintaining paid employment: evidence in European countries. J Epidemiol Commun H 61(7):597–604

    Article  Google Scholar 

  • Solem PE, Syse A, Furunes T, Mykletun RJ, De Lange AH, Schaufeli W, Ilmarinen J (2014) To leave or not to leave: retirement intentions and retirement behaviour. Ageing Soc 36(2):259–281. http://dx.doi.org/10.1017/S0144686X14001135

    Article  Google Scholar 

  • Solem PE (2015) Ageism and age discrimination in working life. Nord Psychol (2015):1–16

    Article  Google Scholar 

  • Statistics Norway (2016a) https://www.ssb.no/en/arbeid-og-lonn/statistikker/akumnd/maaned [Statistics Norway’s website on labour statistics]. Accessed date Oct.-Dec. 2016

  • Statistics Norway (2016b) [Statistics Norway’s website StateBank 2016]. https://www.ssb.no/statistikkbanken/selectvarval/Define.asp?subjectcode=&ProductId=&MainTable=SosHjTilfeller1&nvl=&PLanguage=1&nyTmpVar=true&CMSSubjectArea=sosiale-forhold-og-kriminalitet&KortNavnWeb=soshjelpk&StatVariant=&checked=true. Accessed date Oct.-Dec. 2016

  • Stokke TA (2008) The anatomy of two-tier bargaining models. Eur J Ind Relat 14(1):7–24

    Article  Google Scholar 

  • Svalund J (2013) Adjusting labour through crisis: A three industry comparison. Econ Ind Democracy: first published online 9 October 2013. https://doi.org/10.1177/0143831X13499619

    Article  Google Scholar 

  • Svalund J, Veland G (2016) Aldersgrenser for oppsigelse og særordninger for eldre i arbeidslivet. Fafo-report 2016:22. Fafo Institute for Labour and Social Research, Oslo

    Google Scholar 

  • Tøge AG, Blekesaune M (2015) Unemployment transitions and self-rated health in Europe: A longitudinal analysis of EU-SILC from 2008 to 2011. Soc Sci Med 143(2015):171–178

    Article  Google Scholar 

  • Virtanen P, Janlert U, Hammarström A (2013) Health status and health behaviour as predictors of the occurrence of unemployment and prolonged unemployment. Public Health 127(1):46–52

    Article  Google Scholar 

  • Westlie L (2008) Norwegian Vocational Rehabilitation Programs: Improving Employability and Preventing Disability? Memorandum 24/2008, Department of Economics, University of Oslo, Oslo

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Fafo Institute of Labour and Social Research, PO Box 2947 Tøyen, 0608, Oslo, Norway

    Tove Midtsundstad

Authors
  1. Tove Midtsundstad
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Tove Midtsundstad .

Editor information

Editors and Affiliations

  1. Max-Planck-Institut für Sozialrecht und Sozialpolitik, München, Germany

    Eva Maria Hohnerlein

  2. Institut de l’Ouest: Droit et Europe (UMR CNRS 6262), Université de Rennes 1 , Rennes, France

    Sylvie Hennion

  3. Puyrolland, France

    Otto Kaufmann

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer-Verlag GmbH Deutschland, ein Teil von Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Midtsundstad, T. (2018). The Norwegian Unemployment – Disability Paradox. In: Hohnerlein, E., Hennion, S., Kaufmann, O. (eds) Erwerbsverlauf und sozialer Schutz in Europa. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-56033-4_44

Download citation

  • DOI: https://doi.org/10.1007/978-3-662-56033-4_44

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-662-56032-7

  • Online ISBN: 978-3-662-56033-4

  • eBook Packages: Social Science and Law (German Language)

Publish with us

Policies and ethics

Search

Navigation