Gender Pension Gap in Norway : An Empirical Study "What are the key contributing factors affecting the pension gap?"

Abstract

This thesis investigates the gender disparities in pension income in context of Norwegian population, focusing on the socio-demographic factors that contribute to this gap. More specifically, this study is an empirical investigation on whether there is a difference in average pension income between men and women among the Norwegian retirees in the age range of 67 to 74 in year 2017, as the latest year with available data. Utilizing microdata provided by Statistics Norway and employing multiple linear regression analysis, this research offers a comprehensive understanding of the factors influencing pension income disparities between genders. Our findings reveal a significant gender pension gap. The disparity is around 28% on average against females and decreases after adjusting for sociodemographic variables, highlighting the possibility of systemic issues contributing to this inequality. The disparity after controlling marital status and parenthood, particularly motherhood, is reduced to 2.9% highlighting the importance of these variables in explaining the gap which can provides valuable insights for policymaking aimed at reducing the gender pension gap. While the methodology offers clarity in interpretation, the study acknowledges limitations due to data constraints, particularly in fully capturing the nuances of gender-specific employment patterns and their impact on pension outcomes.