When the oil is no longer around to finance Norwegians' salary level, people's wages may have to be reduced by as much as 25 percent, predicts economist Knut Anton Mork.
The high demand for Norwegian oil and gas is what has given the nation's salary level such a steep increase, says Mork.
Between 2003 and 2012 the Norwegian wage level was 38 percent above the average in the Nordic countries, and 64 percent above the average in the Euro zone.
Mork tells Finansavisen that Norwegians will have to get used to significant wage cuts, on par with the other Nordic countries, and prepare for the day when the Norwegian oil investments can no longer finance the high salaries.
"Norway is a boomtown. It's what we have. It's what we are. We should not fool ourselves to believe that our prosperity comes from us being any smarter or more responsible than anyone else," Mork says.
It is better to prepare and assume that it will happen, rather than claiming that it will not, Mork concludes.
(Aftenposten)
Julie Ryland
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