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)