Did you know?
| indicator | value | unit |
|---|---|---|
| Population | 5.3 | mil. |
| Visitors per year | 2.5 | mil. |
| Renewable energy | 46.9 | % |
How’s Life?
Norway performs well in many dimensions of well-being relative to other countries in the Better Life Index. Norway outperforms the average in jobs, work-life balance, education, health, environmental quality, social connections, civic engagement, safety and life satisfaction. These assessments are based on available selected data.
Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Norway, the average household net-adjusted disposable income per capita is USD 39 144 a year, more than the OECD average of USD 30 490 a year.
In terms of employment, about 75% of people aged 15 to 64 in Norway have a paid job, above the OECD employment average of 66%. Some 77% of men are in paid work, compared with 73% of women. In Norway, 1% of employees work very long hours in paid work, below the OECD average of 10%, with 2% of men working very long hours in paid work compared with 1% of women.
Good education and skills are important requisites for finding a job. In Norway, 82% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%. However, completion varies slightly between men and women, as 82% of men have successfully completed high school compared with 83% of women. In terms of the quality of the education system, the average student scored 497 in reading literacy, maths and science in the OECD's Programme for International Student Assessment (PISA). This score is higher than the OECD average of 488. On average in Norway, girls outperformed boys by 22 points, well above the average OECD gap of 5 points.
In terms of health, life expectancy at birth in Norway is around 83 years, two years higher than the OECD average of 81 years. Life expectancy for women is 85 years, compared with 81 for men. The level of atmospheric PM2.5 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 6.7 micrograms per cubic meter, below the OECD average of 14 micrograms per cubic meter. In Norway, 98% of people say they are satisfied with the quality of their water, higher than the OECD average of 84%.
Concerning the public sphere, there is a strong sense of community and high levels of civic participation in Norway, where 96% of people believe that they know someone they could rely on in time of need, more than the OECD average of 91%. Voter turnout, a measure of citizens' participation in the political process, was 78% during recent elections, higher than the OECD average of 69%. Social and economic status can affect voting rates; voter turnout for the top 20% of the population is an estimated 81% and for the bottom 20% it is an estimated 76%.
When asked to rate their general satisfaction with life on a scale from 0 to 10, Norwegians gave it a 7.3 grade on average, higher than the OECD average of 6.7.
For more information on estimates and years of reference, see FAQ section and BLI database.
Topics
OECD in Action
OECD Economic Surveys: Norway
OECD’s periodic surveys of the Norwegian economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.
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Norway in Detail
Housing – Norway expand
Key Findings
Living in satisfactory housing conditions is one of the most important aspects of people's lives. Housing is essential to meet basic needs, such as shelter, but it is not just a question of four walls and a roof. Housing should offer a place to sleep and rest where people feel safe and have privacy and personal space; somewhere they can raise a family. All of these elements help make a house a home. And of course there is the question whether people can afford adequate housing.
Housing costs take up a large share of the household budget and represent the largest single expenditure for many individuals and families, by the time you add up elements such as rent, gas, electricity, water, furniture or repairs. In Norway, households on average spend 18% of their gross adjusted disposable income on keeping a roof over their heads, below the OECD average of 20%.
In addition to housing costs it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities. The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and children's development. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Norway, the average home contains 2.1 rooms per person, more than the OECD average of 1.7 rooms per person. In terms of basic facilities, the nearly every dwelling sampled in Norway contains private access to an indoor flushing toilet, more than the OECD average of 97%.
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How's Life?: Measuring Well-beingIndicators
Income – Norway expand
Key Findings
While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, health care and housing.
Household net adjusted disposable income is the amount of money that a household earns each year after taxes and transfers. It represents the money available to a household for spending on goods or services. In Norway, the average household net adjusted disposable income per capita is USD 39 144 a year, higher than the OECD average of USD 30 490.
Household net wealth is the total value of a household's financial and non-financial worth, such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles, valuables and other non-financial assets (e.g other consumer durables). In Norway, the average household net wealth is estimated at USD 268 358, lower than the OECD average of USD 323 960.
For more information on estimates and years of reference, see FAQ section and BLI database.
Better Policies for Better Lives
Redistribution for an egalitarian society
Norway's economic policy puts a high priority on inclusiveness and egalitarianism, and there is a high level of social cohesion. Wage inequality is low, which, combined with high labour-force participation (most importantly among women) and redistribution through the tax and benefit system, results in an egalitarian distribution of net household income.
Norway's tax system raises a lot of revenue with a heavy emphasis on income taxation. This reflects another dimension of Norway's societal choice, as the tax revenues help fund comprehensive public services. However, high income tax limits the economy's capacity for diversification and impacts on cost competitiveness. The government is putting a strong emphasis on reducing income tax burden, especially for corporations.
In line with the government's policy of reducing taxation, Norway's overall tax structure could shift away from direct to indirect taxation to encourage productivity growth. In addition, tax distortions in housing could be reduced by either abolishing tax deductions of mortgage interest or by increasing property taxes on housing as a proxy for implicit rent.
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How's Life?: Measuring Well-beingIndicators
Jobs – Norway expand
Key Findings
Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one's own aspirations, building self-esteem and developing skills and competencies. In Norway, about 75% of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 66%.
Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Norway, the percentage of the labour force that has been unemployed for a year or longer is currently at nearly 0.9%, lower than the OECD average of 1.3%.
The wages and other monetary benefits that come with employment are an important aspect of job quality. Norwegians earn USD 55 780 per year on average, more than the OECD average of USD 49 165.
Another essential factor of employment quality is job security, in terms of expected loss of earnings when someone becomes unemployed. This includes how likely you are to lose your job, how long you are likely to remain unemployed and how much financial assistance you can expect from government. Workers facing a high risk of job loss are more vulnerable, especially in countries with smaller social safety nets. In Norway, workers face an expected 2.8% loss of earnings if they become unemployed, lower than the OECD average of 5.1%.
For more information on estimates and years of reference, see FAQ section and BLI database.
Better Policies for Better Lives
Attracting migrant workers to rural areas
In Norway, regions face a challenge in building an infrastructure for expatriates. One example is the coastal county of Møre and Romsdal, where the largest town, Ålesund, has 45 000 inhabitants. Specialised in shipbuilding supplying the oil industry, local firms report a continuous shortage of engineers and other tertiary-educated workers, and is therefore interested in attracting new families.
The lifestyle in rural Norway suits some labour migrants but not others. Departure in the initial year is high. The county reports that if the migrant or family stays more than one year, they are likely to remain over time. Female labour migrants generally arrive single but settle if they find a partner. Male migrants tend to bring their families; once their children are in school, retention is high.
The Ålesund Chamber of Commerce in partnership with regional businesses and local authorities created an international school as a non-profit foundation. The Norwegian state pays 85% of the cost of the school, so tuition is a fraction of the cost of private schools in Oslo. The county has also pushed the municipal services in rural towns to be more proactive with new migrants, going out to welcome them upon arrival, identify their needs and help them. For spouses who arrive without employment, local firms are active in trying to identify possible employment for them.
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How's Life?: Measuring Well-being OECD Job Quality DatabaseIndicators
Community – Norway expand
Key Findings
Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.
A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities. In Norway, 96% of people believe that they know someone they could rely on in a time of need, more than the OECD average of 91%.
A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations.
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How's Life?: Measuring Well-being OECD Insights: Human CapitalIndicators
Education – Norway expand
Key Findings
A well-educated and well-trained population is essential for a country's social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Having a good education greatly improves the likelihood of finding a job and earning enough money. Norwegians can expect to go through 18.4 years of education between the ages of 5 and 39, similar to the OECD average of 18 years.
Graduating from upper secondary education has become increasingly important in all countries, as the skills needed in the labour market are becoming more knowledge-based. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market. In Norway, 82% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%.
But graduation rates, while important, speak little to the quality of education received. The OECD's Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2018, PISA focused on examining students' reading ability, skills in maths and level in sciences, as research shows that these skills are more reliable predictors of economic and social well-being than the number of years spent in school.
The average student in Norway scored 497 in reading literacy, maths and sciences, above the OECD average of 488. The best-performing school systems manage to provide high-quality education to all students.
Better Policies for Better Lives
Facilitating access to early childhood education and care
Norway has implemented a number of reforms to help parents from low-income families put their children in kindergarten, giving young children better access to early childhood education and care (ECEC). The 2004-09 reform first introduced a regulation lowering fees by 35% across all kindergartens by 2014. Between 2004 and 2012, participation of 1-5 year-olds in ECEC increased markedly.
In 2015, a new regulation brought fees down to a maximum of 6% of family income for low-income families, reducing fees for families in need, while higher-income families paid the maximum fee. This was coupled with the right to 20 hours of free kindergarten per week for 3-5 year-olds from disadvantaged backgrounds.
These changes have not yet been fully evaluated, but it has been observed that the number of years in kindergarten is associated with children’s scores on literacy tests in first grade. Among children with at least four years of kindergarten, only 15% scored low, compared to nearly 40% of children with between 0-2 years in ECEC. The availability of free 20 hours per week of ECEC increased the participation of minority-language children by 15% and has already led to better results on mapping tests in the first and second grades compared to those who did not take part in the programme. These early results suggest that outcomes will continue to improve for children from disadvantaged backgrounds.
Training school leaders
Norway introduced a leadership training and development programme in 2009 to improve the effectiveness of school leaders. The programme provides training to school leaders, with priority to those who have been in their position for less than two years. The training focuses on five key areas: pupils’ learning outcomes and learning environment, management and administration, co-operation and organisational development, development and change, and the leadership role. Based on experience and on evaluations of the programme, there is now greater involvement among school providers/owners and organisations of school leaders, greater integration of skills training, and more knowledge-sharing among participants.
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How's Life?: Measuring Well-beingIndicators
Environment – Norway expand
Key Findings
The quality of our local living environment has a direct impact on our health and well-being. Outdoor air pollution is one important environmental issue that directly affects the quality of people's lives. Despite national and international interventions and decreases in major pollutant emissions, the health impacts of urban air pollution continue to worsen, with air pollution set to become the top environmental cause of premature mortality globally by 2050. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.
PM2.5 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Norway, PM2.5 levels are 6.7 micrograms per cubic meter, much lower than the OECD average of 14 micrograms per cubic meter and lower than the annual guideline limit of 10 micrograms per cubic meter set by the World Health Organization.
Access to clean water is fundamental to human well-being. Despite significant progress in OECD countries in reducing water pollution, improvements in freshwater quality are not always easy to discern. In Norway, 98% of people say they are satisfied with water quality, one of the highest in the OECD, where the average is 84%.
Better Policies for Better Lives
Norway leads the world in sales of electric vehicles
Thanks to assertive policy actions, Norway has the world’s highest percentage of sales of electric vehicles. In 2015, nearly 25% of cars sold were battery electric vehicles and plug-in hybrid electric vehicles. High sales of electric vehicles must be seen in the context of Norway’s heavy taxes on vehicle purchases and fuels. The country’s high registration taxes are broadly based on vehicle emissions performance.
The Norwegian support scheme for electric vehicles, which began in 1990, includes road and congestion toll exemptions, free parking, zero VAT and access to dedicated bus lanes at given times. The first co-ordinated, nationwide roll-out of public charging infrastructure began in 2009-2010. By 2010, 2 800 new normal charging points were installed. Over the next five years, national government subsidies for public charging installation and operations were gradually devolved to local authorities. By 2016, more than 1 000 fast or “semi-fast” charging stations had been built, and more than 7 500 public charging points were in operation.
Despite having already implemented the above policies for more than a decade, the growth in Norway’s sales shares of electric vehicles are a very recent and unforeseen phenomenon. The long-time lag may stem from the limited choice of models initially on offer, the slow improvement of the characterisics and cost competitiveness of electric vehicles, and delayed consumer response to embrace vehicles when they were initially introduced. Given the ongoing cost gap between electric and conventional cars and limited access to recharging infrastructure, the boom in Norway’s electric vehicle market would have not taken off without the government’s robust support policy.
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How's Life?: Measuring Well-being OECD Environmental Outlook to 2050Indicators
Governance – Norway expand
Key Findings
Trust in government is essential for social cohesion and well-being. High voter turnout is a measure of citizens' participation in the political process. In the most recent elections for which data are available, voter turnout in Norway was 78% of those registered. This figure is higher than the OECD average of 69%.
Broader public engagement in the decision-making process is also important for holding the government to account and maintaining confidence in public institutions. The formal process for public engagement in developing laws and regulations is one way to measure the extent to which people can become involved in government decisions on key issues that affect their lives. In Norway, the level of stakeholder engagement in developing regulations is 2.2 (on a scale between 0 and 4); higher than the OECD average of 2.1.
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How's Life?: Measuring Well-being Regulatory Policy Outlook: NorwayIndicators
Health – Norway expand
Key Findings
Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. Life expectancy at birth for the whole population in Norway stands at 83 years, two years above the OECD average of 81 years. Higher life expectancy is generally associated with higher health care spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors).
When asked "How is your health in general?" 75% of people in Norway reported to be in good health, more than the OECD average of 68%. Despite the subjective nature of this question, answers have been found to be a good predictor of people’s future health care use. Gender, age and social status may affect answers to this question.
Better Policies for Better Lives
Primary care in Oslo
Several initiatives are underway in Oslo to respond to the challenge of meeting evolving primary health care needs.
Oslo has a GP-run, 32-bed, urgent care unit with the aim of avoiding admission to hospital for patients with a known diagnosis. The urgent care unit runs in parallel to a primary care emergency service (PCES) that runs a Clinical Decision Unit (CDU). Here, patients can stay up to 24 hours before decision to admit or to send home must be taken. Around 20% are admitted; Oslo municipality estimates that this figure would be around 80% without the CDU. Oslo's emergency primary care unit also offers emergency social services such as arranging accommodation for homeless individuals or counselling for victims of assault. Around 23 000 contacts per year are made, signalling a huge demand. Finally, Oslo has an innovative unit where elderly can self-refer for nursing care. Patients often self-refer for social care and occasionally for clinical care as well (for example when they have flu-like symptoms). The unit is nurse run and patients can be referred onward for specialist clinical care if needed. This has proved popular and anecdotal evidence states that patients who have been once are reassured by its presence and tend not to overuse.
Accelerating diagnosis
Norway's Oslo University Hospital has greatly reduced the waiting time for breast cancer diagnosis to lessen patient levels of anxiety and uncertainty. The hospital used design-driven innovation methods to identify logistical and organisational inefficiencies and improve workflow. Previously women had to wait up to 12 weeks to find out if their tumour was malignant or benign. The waiting time has since been reduced by 75% (or 48 hours).
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How's Life?: Measuring Well-beingIndicators
Life Satisfaction – Norway expand
Key Findings
Happiness or subjective well-being can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to objective data to compare the quality of life across countries.
Life satisfaction measures how people evaluate their life as a whole rather than their current feelings. When asked to rate their general satisfaction with life on a scale from 0 to 10, Norwegians on average gave it a 7.3 grade, higher than the OECD average of 6.7.
Better Policies for Better Lives
High levels of life satisfaction based on strong social cohesion
Norway scores highly in international comparisons of material well-being but also in other quality of life dimensions. For example, the average level of life satisfaction in Norway is one of the highest in the OECD.
These high scores may be related to the Norwegian model of a relatively egalitarian society, where social consensus and a high degree of inclusiveness are important. Not only is wage inequality relatively low in Norway, redistribution through the tax and benefit system is also substantial. The generous provision of public services also plays a major role in Norwegians' personal fulfilment and well-being. Recent data shows that Norwegians are pleased with these services. In 2014, 82% reported being highly satisfied with their health care system, about the OECD average of 71%. Norwegians also reported being highly satisfied with the education system, again 82%, compared to 67% on average across the OECD.
Thanks to oil assets, government revenues have exceeded expenditures over the past decade, even during the recent fiscal crisis. Protected from the worst of the crisis by this natural resource and a sound macroeconomic policy framework, Norway continues to enjoy high levels of income and well-being.
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How's Life?: Measuring Well-beingIndicators
Safety – Norway expand
Key Findings
Personal security is a core element for the well-being of individuals. Do you feel safe out walking, alone at night, for example? In Norway, about 93% of people say that they feel safe walking alone at night, much more than the OECD average of 74%, and the highest in the OECD.
The homicide rate (the number of murders per 100 000 inhabitants) is a more reliable measure of a country's safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Norway's homicide rate is 0.6, less than the OECD average of 2.6.
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How's Life?: Measuring Well-beingIndicators
Work-Life Balance – Norway expand
Key Findings
Finding a suitable balance between work and life is a challenge for all workers, especially working parents. The ability to successfully combine work, family commitments and personal life is important for the well-being of all members in a household. Governments can help to address the issue by encouraging supportive and flexible working practices, making it easier for parents to strike a better balance between work and home life.
An important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardise safety and increase stress. In Norway, about 1% of employees work very long hours in paid work, much less than the OECD average of 10%.
The more people work, the less time they have to spend on other activities, such as time with others, leisure activities, eating or sleeping. The amount and quality of leisure time is important for people's overall well-being, and can bring additional physical and mental health benefits. In Norway, full-time workers devote 65% of their day on average, or 15.7 hours, to personal care (eating, sleeping, etc.) and leisure (socialising with friends and family, hobbies, games, computer and television use, etc.) – more than the OECD average of 15 hours.