This report proposes a comprehensive methodology for evaluating the Norwegian regionally differrentiated social security contribution scheme (RDSSC scheme). We recommend using Difference-in-Differences modelling on a full population both at an aggregated and municipality level. The evaluation should be supplemented by Regression Discontinuity Design and a matching procedure to identify proper, yet synthetic control groups. Once the evaluator has identified the effect of the RDSSC scheme on imp-ortant evaluation criteria, we recommend using existing regional models to study “ripple effects” of the scheme’s main effects. We estimate the total cost of the evaluation at NOK 6,600,000 including VAT.
The report can be downloaded from this link: R16-2015 Evaluation of the regionally differentiated social security contribution scheme in Norway – a feasibility study