OECD Economic Surveys: Norway 2019

Executive Summary
	Wellbeing is high, but must be sustained
	The economy is vulnerable to trade and property-market risks
	Fiscal space is set to increase more slowly in the coming years
	Productivity growth is low and labour force participation has been slipping
1 Key policy insights
	Macroeconomic prospects, risks and policy responses
		Robust, but slowing, output growth is projected
		Monetary policy is tightening and fiscal policy is broadly neutral
		External risks to the economic outlook are on the downside
		Property markets remain the principal domestic vulnerability
		Financial stability: vigilance by financial-market regulators is still required
	Fiscal policy, tax and public spending reform
		Government budgeting: coping with less favourable fiscal conditions
		Special “off-rule” funding arrangements should not be employed
		Tax reform remains a central pillar of economic policy
		Making public spending more efficient
	Towards higher productivity in the business sector
		A very good record on corruption but not without challenges
	Employment levels need strengthening
		Sick-leave compensation and disability: major reform is required
		Old-age pensions and the age of retirement: sound public-sector pension reform but issues remain
		Raising the labour-market integration of immigrants
	Improving education and skills
	Norway should build on its relatively good policies for environmental sustainability
	Bibliography
2 Maintaining high employment
	Introduction
	Key aspects of Norway’s labour market
		The labour market is currently tightening and performs well overall
		Employment rates are high but have deteriorated over time
		Good job quality and a compressed wage distribution make for an inclusive labour market
		Employment rates of people with disabilities and non-natives could be higher
		Coordinated wage bargaining and labour migration help absorb shocks
		Technology and globalisation bring change and require new skills
	Key policy areas for strengthening employment outcomes
		Reforming sickness and disability systems, next steps
			Sick-leave reform
			Disability benefit reform
			Major medical-assessment reform for sick leave and disability claims could reduce take-up of benefits
			Specific measures to address work absence due to mental ill health are required
		Getting incentives right in retirement-age choices
			Government reforms have widened retirement-age choice and reduced biases
			Addressing tensions from retirement-age choice and pay out adjustment
			Linking age dimensions to longevity should be explored
			Adjustment in pension provisions for those on disability benefits is required
			Special occupational retirement-age rules ("særaldersgrenser") remain unreformed
		Education and Skills for High Employment
			There is room for improving skills in Norway
			Reform efforts in schools are ongoing
			Boys’ lower performance in schools is a concern
			Tackling high drop-out in vocational education
			Making higher education more relevant for the labour market
			Improving choices in education with career advice and better information
			Skills reform for lifelong learning
		Raising employment rates of immigrants
	Bibliography