Norges Bank

Staff Memo

Unemployment benefits and household credit risk

Kjersti Gro Lindquist and Bjørn H. Vatne
Staff Memo


In Norway the wage replacement rate, i.e. the proportion of wage income that is replaced by unemployment benefit, falls with high income. At the same time, the distribution of debt is skewed towards high-income earners. This paper maps out the wage replacement rate across Norwegian households and discuss credit risk in the event of unemployment.

Staff Memos present reports and documentation written by staff members and affiliates of Norges Bank, the central bank of Norway. Views and conclusions expressed in Staff Memos should not be taken to represent the views of Norges Bank.

ISSN 1504-2596 (online)

Published 26 November 2014 15:30
Published 26 November 2014 15:30