Gaute Torsvik

• Kvarven, Amanda; Strømland, Eirik André & Torsvik, Gaute (2025). Intuitive prosociality: heterogeneous treatment effects or false positive? Journal of Economic Psychology. ISSN 0167-4870. 112. doi: 10.1016/j.joep.2025.102873. Full text in Research Archive Show summary

  This paper uses a randomized experiment on a representative sample from the Norwegian population (N = 1368) to test whether prosocial behavior is intuitive. We use time pressure to capture intuitive decision making and a dictator game to measure prosocial behavior. We also estimate and test for “population heterogeneity” in the effect size. First, we exogenously vary subject experience with economic games to test whether experience influences the treatment effect. Second, we leverage our data structure to conduct a “pseudo meta-analysis,” assessing effect size heterogeneity across several potential sources of heterogeneity. This helps us assess whether prior findings in the literature stem from false positives or genuine heterogeneity in effect sizes. Our results show no evidence that experience with economic experiments moderates the time pressure effect. The estimated heterogeneity in effect sizes in the pseudo meta-analysis is negligible. Further, we cannot reject the null hypothesis of a uniform p-value distribution, and our rejection rate aligns with the expected 5 % from chance alone. These findings support the view that the apparent link between prosocial behavior and intuitive processing is likely due to false positives rather than heterogeneous treatment effects.

• Mogstad, Magne; Salvanes, Kjell Gunnar & Torsvik, Gaute (2025). Income Equality in the Nordic Countries: Myths, Facts, and Lessons. Journal of Economic Literature. ISSN 0022-0515. 63(3), p. 791–839. doi: 10.1257/jel.20251636. Full text in Research Archive Show summary

  Policymakers, public commentators, and researchers often cite the Nordic countries as examples of a socioeconomic model that combines low income inequality with prosperity and growth. This article critically assesses that claim by integrating theoretical perspectives and empirical evidence to explain how the Nordic model functions and why these countries experience low inequality. Our analysis suggests that income equality in the Nordics is largely driven by a significant compression of hourly wages, reducing returns to labor market skills and education. This appears to result from a wage bargaining system characterized by strong coordination within and across industries. This finding challenges other commonly cited explanations for Nordic income equality, such as redistribution through the tax transfer system, public spending on goods that complement employment, and public policies promoting equal skills and human capital. We consider broader lessons for economies aiming to reduce inequality and conclude by highlighting several under-explored or unresolved questions. (JEL D31, E23, H23, J24, J31, J52)

• Løyland, Knut; Raaum, Oddbjørn; Torsvik, Gaute & Øvrum, Arnstein (2023). Evaluating compliance gains of expanding tax enforcement. Economica. ISSN 0013-0427. 91(361), p. 142–162. doi: 10.1111/ecca.12499. Full text in Research Archive Show summary

  Abstract This paper demonstrates how tax administrations can evaluate future compliance gains from risk‐based tax enforcement that audits all taxpayers above a risk threshold. Expanding tax enforcement in this setting means reducing the audit threshold. The compliance gains from such an expansion consist of a mechanical audit correction effect and a behavioural effect that reflects changes in self‐reporting in the subsequent years. We estimate this behavioural effect in a regression discontinuity analysis with the risk score as the forcing variable. We find that taxpayers at the margin had a significant reduction in self‐reported deductions in the next years' tax filing. The behavioural effect over a three‐year post‐audit period is estimated to be of a magnitude similar to that of the direct adjustment of the audit. This compliance effect does not change when we include the reporting of the spouse. We find that the risk score threshold that maximizes net public revenue from the audits is considerably below current practice.

• Torsvik, Gaute; Molander, Anders & Terum, Lars Inge (2021). The will to sanction: How sensitive are caseworkers to recipients’ responsibility when imposing sanctions on non-compliance in a welfare-to-work programme? International Journal of Social Welfare. ISSN 1369-6866. 31(1), p. 77–85. doi: 10.1111/ijsw.12472. Full text in Research Archive Show summary

  The activation trend in social policy entails that caseworkers on the frontlines of the welfare state are expected to decide ‘reasonable’ activation requirements for clients and when and how non-compliance should be sanctioned. This study investigates how caseworkers form judgements about their clients’ personal responsibility when activation requirements are violated and how their judgements about responsibility matter for the sanctions they impose. We find that caseworkers are sensitive to personal responsibility, varying the motivation for not fulfilling the activation requirement from a case where the client has less control (circumstances) to one with more control (choice) more than doubles sanctions.

• Ferman, Bruno; Torsvik, Gaute & Vaage, Kjell (2021). Skipping the doctor: evidence from a case with extended self-certification of paid sick leave. Journal of Population Economics. ISSN 0933-1433. p. 1–37. doi: 10.1007/s00148-021-00841-6. Full text in Research Archive Show summary

  This paper examines the impact of a policy reform in a municipality in Norway that extended to workers the right to self-certify sickness absence from work. After the reform, workers were no longer obliged to obtain a certificate from a physician to receive sickness benefits. They could call in sick directly to their line leader and had to engage in a counselling program organized by the employer. To estimate the effect of this reform, we contrast the change in sickness absence among employees who were granted the extended right to self-certify absence with absence among employees who had to obtain a physician’s certificate to be entitled to sickness benefits. We use both a standard difference-in-differences method and the synthetic control method to estimate the effect of the reform. We can rule out large positive effects on absence after the reform, with strong evidence that the policy change actually resulted in a reduction in absence for female workers.

• Dhillon, Amrita; Iversen, Vegard & Torsvik, Gaute (2021). Employee referral, social proximity, and worker discipline: Theory and suggestive evidence from india. Economic development and cultural change. ISSN 0013-0079. 69(3), p. 1003–1030. doi: 10.1086/704512. Full text in Research Archive Show summary

  We propose a new theory to explain why employers mobilize workplace insiders for the hiring of new staff. In settings with incomplete contracts, we show how workplace insiders can help employers tackle recruit discipline challenges at a lower cost. A key idea is that the employer can use sanctions against the referee to keep the new hire in line. Our model predicts that employers will use existing staff of stature and with accumulated goodwill within the firm as referees, since such staff have a personal stake in their choice of recruit. The model also predicts a strong social tie between the referee and the recruit to ensure that the recruit internalizes the costs to the referee of own misbehavior or underperformance. We use a small in-depth data set from India to scrutinize how well the predictions of our theory and of the main rival explanations for referral align with hiring patterns as well as wage and labor turnover observations. We find suggestive support for our theory and argue that these findings are hard to reconcile with rival referral explanations.

• Molander, Anders & Torsvik, Gaute (2021). In Their Own Best Interest. Is There a Paternalistic Case for Welfare Conditionality? Journal of Social Policy. ISSN 0047-2794. 51(1), p. 191–208. doi: 10.1017/S0047279420000768. Full text in Research Archive Show summary

  This paper examines paternalism as a justification for welfare reforms making benefits conditional on participation in activation programs. We clarify different types of what we denote ‘throffer paternalism’ – a paternalism conjoining an offer with a threat – and ask whether there is a good case for any of them. We argue that hard but non-perfectionistic paternalism provides the most promising defense for mandatory activation but conclude that it does not give a convincing justification for this type of welfare policy.

• Torsvik, Gaute; Kjell, Vaage & Ferman, Bruno (2021). "skipping the doctor: evidence from a case with extended self-certification of paid sick leave. Journal of Population Economics. ISSN 0933-1433. Full text in Research Archive
• Finseraas, Henning; Hanson, Torbjørn; Johnsen, Åshild Auglænd; Kotsadam, Andreas & Torsvik, Gaute (2019). Trust, ethnic diversity, and personal contact: A field experiment. Journal of Public Economics. ISSN 0047-2727. 173. doi: 10.1016/j.jpubeco.2019.02.002. Full text in Research Archive Show summary

  We study how close personal contact with minorities affects in-group and out-group trust in a field experiment in the armed forces. Soldiers are randomly assigned to rooms with or without ethnic minorities. At the end of the recruit period, we measure trust by using a trust game. Results indicate that close personal contact with minorities increases trust towards a generic immigrant. We replicate the result that individuals coming from more ethnically diverse areas trust minorities less, but random assignment to interact with minority soldiers removes this negative correlation. We conclude that social integration involving personal contact can reduce negative effects of ethnic diversity on trust.

• Auerswald, Heike; Schmidt, Carsten; Thum, Marcel & Torsvik, Gaute (2018). Teams in a public goods experiment with punishment. Journal of Behavioral and Experimental Economics. ISSN 2214-8043. 72, p. 28–39. doi: 10.1016/j.socec.2017.11.001. Full text in Research Archive
• Strømland, Eirik Andre; Tjøtta, Sigve & Torsvik, Gaute (2018). Mutual choice of partner and communication in a repeated prisoner's dilemma. Journal of Behavioral and Experimental Economics. ISSN 2214-8043. 75(75), p. 12–23. doi: 10.1016/j.socec.2018.05.002. Full text in Research Archive Show summary

  Many markets resemble repeated prisoner's dilemma situations with the possibilities for mutual partner choice. In this paper, we show experimentally that partner choice by mutual consent has a strong positive effect on cooperation. Mutual partner choice makes it possible to form long-lasting reciprocal partnerships. To understand partnership formation we also add a treatment where the participants could communicate with each other in a common chat room. Chat transcript reveals that promises are important in forming and sustaining a partnership.

• Binyaruka, Peter John; Robberstad, Bjarne; Torsvik, Gaute & Borghi, Josephine (2018). Does payment for performance increase performance inequalities across health providers? A case study of Tanzania. Health Policy and Planning. ISSN 0268-1080. 33(9), p. 1026–1036. doi: 10.1093/heapol/czy084. Full text in Research Archive Show summary

  The impact of payment-for-performance (P4P) schemes in the health sector has been documented, but there has been little attention to the distributional effects of P4P across health facilities. We examined the distribution of P4P payouts over time and assessed whether increased service coverage due to P4P differed across facilities in Tanzania. We used two service outcomes that improved due to P4P [facility-based deliveries and provision of antimalarials during antenatal care (ANC)], to also assess whether incentive design matters for performance inequalities. We used data from 150 facilities from intervention and comparison areas in January 2012 and 13 months later. Our primary data were gathered through facility survey and household survey, while data on performance payouts were obtained from the programme administrator. Descriptive inequality measures were used to examine the distribution of payouts across facility subgroups. Difference-in-differences regression analyses were used to identify P4P differential effects on the two service coverage outcomes across facility subgroups. We found that performance payouts were initially higher among higher-level facilities (hospitals and health centres) compared with dispensaries, among facilities with more medical commodities and among facilities serving wealthier populations, but these inequalities declined over time. P4P had greater effects on coverage of institutional deliveries among facilities with low baseline performance, serving middle wealth populations and located in rural areas. P4P effects on antimalarials provision during ANC was similar across facilities. Performance inequalities were influenced by the design of incentives and a range of facility characteristics; however, the nature of the service being targeted is also likely to have affected provider response. Further research is needed to examine in more detail the effects of incentive design on outcomes and researchers should be encouraged to report on design aspects in their evaluations of P4P and systematically monitor and report subgroup effects across providers.

• Terum, Lars Inge; Torsvik, Gaute & Øverbye, Einar (2018). Discrimination against ethnic minorities in activation programme? Evidence from a vignette experiment. Journal of Social Policy. ISSN 0047-2794. 47(1), p. 39–56. doi: 10.1017/S0047279417000113. Full text in Research Archive Show summary

  We conducted a vignette experiment involving 470 Norwegian front-line workers to investigate whether their decisions to sanction non-compliance of activation requirements varied with the ethnicity of the welfare claimant. This is the first vignette experiment on ethnic discrimination in the administration of activation programmes in Europe. The study shows that front-line workers did not sanction claimants with a North African name more often than claimants with a native Norwegian name. However, among front-line workers who had experience with the relevant activation programme, a male claimant with a North African name was sanctioned less often than a male claimant with a native Norwegian name. Thus, we find some degree of reverse discrimination on the part of experienced front-line workers. This finding is contrary to a similar US vignette experiment that detected discrimination (not reverse discrimination) with regard to claimants with an ethnic minority name. The most likely explanation for the difference concerns the different institutional-cultural contexts within which Norwegian and US social policy programmes operate.

• Binyaruka, Peter John; Robberstad, Bjarne; Torsvik, Gaute & Borghi, Josephine (2018). Who benefits from increased service utilisation? Examining the distributional effects of payment for performance in Tanzania. International Journal for Equity in Health. 17:14, p. 1–16. doi: 10.1186/s12939-018-0728-x. Full text in Research Archive Show summary

  Background: Payment for performance (P4P) strategies, which provide financial incentives to health workers and/or facilities for reaching pre-defined performance targets, can improve healthcare utilisation and quality. P4P may also reduce inequalities in healthcare use and access by enhancing universal access to care, for example, through reducing the financial barriers to accessing care. However, P4P may also enhance inequalities in healthcare if providers cherry-pick the easier-to-reach patients to meet their performance targets. In this study, we examine the heterogeneity of P4P effects on service utilisation across population subgroups and its implications for inequalities in Tanzania. Methods: We used household data from an evaluation of a P4P programme in Tanzania. We surveyed about 3000 households with women who delivered in the last 12 months prior to the interview from seven intervention and four comparison districts in January 2012 and a similar number of households in 13 months later. The household data were used to generate the population subgroups and to measure the incentivised service utilisation outcomes. We focused on two outcomes that improved significantly under the P4P, i.e. institutional delivery rate and the uptake of antimalarials for pregnant women. We used a difference-in-differences linear regression model to estimate the effect of P4P on utilisation outcomes across the different population subgroups. Results: P4P led to a significant increase in the rate of institutional deliveries among women in poorest and in middle wealth status households, but not among women in least poor households. However, the differential effect was marginally greater among women in the middle wealth households compared to women in the least poor households (p = 0.094). The effect of P4P on institutional deliveries was also significantly higher among women in rural districts compared to women in urban districts (p = 0.028 for differential effect), and among uninsured women than insured women (p = 0.001 for differential effect). The effect of P4P on the uptake of antimalarials was equally distributed across population subgroups. Conclusion: P4P can enhance equitable healthcare access and use especially when the demand-side barriers to access care such as user fees associated with drug purchase due to stock-outs have been reduced.

• Torsvik, Gaute (2017). Workplace Productivity and Bonus Preferences: Why Do Men With Low Productivity Prefer Individual Pay? Economica. ISSN 0013-0427. 84(335), p. 498–515. doi: 10.1111/ecca.12188. Full text in Research Archive Show summary

  This paper examines the relationship between workers' productivity and preferred bonus scheme. The data are from a company where agents work in teams and receive a bonus that depends on individual and team performance. Standard agency theory predicts that workers with productivity below the team average prefer a team bonus, while high‐productivity agents prefer an individual bonus. Risk aversion may temper the taste for individual pay. This model predicts the observed relationship between productivity and bonus preferences very well. There is, however, one pattern that it cannot explain: many low performers—especially men—prefer individual bonuses.

• Aakvik, Arild; Hansen, Frank & Torsvik, Gaute (2017). Productivity dynamics, performance feedback and group incentives in a sales organization. Labour Economics. ISSN 0927-5371. 46, p. 110–117. doi: 10.1016/j.labeco.2016.12.003. Full text in Research Archive Show summary

  This paper investigates the effect of performance feedback on productivity in a company where workers operate in teams and receive a bonus that depends on both individual worker and team productivity. To address this issue, we employ weekly productivity and administrative data obtained from the customer service centre of an insurance company. We find evidence that performance feedback given each Monday morning about past team production and individual rank position within teams influences current individual productivity. The effect of rank position is strongest when bonuses depend on team performance. Overall, our findings suggest that team dynamics may alleviate the free-rider problem often associated with team bonuses, where it is essential that team leaders provide information about individual and team performance in previous periods.

• Terum, Lars Inge; Torsvik, Gaute & Øverbye, Einar (2017). Når vilkår og aktivitetskrav brytes. Frontlinjearbeideres tilnærming til sanksjoner. Søkelys på arbeidslivet. ISSN 1504-8004. 34(3), p. 147–166. doi: 10.18261/issn.1504-7989-2017-03-01. Full text in Research Archive Show summary

  Frontlinjearbeiderne i NAV skal avklare behov og rettigheter, men også stille krav, aktivere og sanksjonere. Artikkelen studerer hvordan frontlinjearbeidere tilnærmer seg situasjoner der stønadsmottakere ikke imøtekommer vilkår og aktivitetskrav, og i hvilken grad disse blir sanksjonert. Studien viser at når aktivitetskrav brytes, legger frontlinjearbeiderne stor vekt på å klargjøre om stønadsmottakerne hadde forutsetninger for å kunne imøtekomme vilkårene, snarere enn å sanksjonere. Når vilkårene oppfattes som rimelige og stønadsmottakeren er informert og advart på tilfredsstillende måte, sanksjonerer imidlertid frontlinjearbeiderne i betydelig grad brudd på aktivitetskravene.

• Finseraas, Henning; Johnsen, Åshild Auglænd; Kotsadam, Andreas & Torsvik, Gaute (2016). Exposure to female colleagues breaks the glass ceiling— Evidence from a combined vignette and field experiment. European Economic Review. ISSN 0014-2921. 90, p. 363–374. doi: 10.1016/j.euroecorev.2015.11.010. Full text in Research Archive Show summary

  We study discrimination among recruits in the Norwegian Armed Forces during boot camp. In a vignette experiment female candidates are perceived as less suited to be squad leaders than their identical male counterparts. Adding positive information leads to higher evaluations of the candidates, but does not reduce the amount of discrimination. However, randomized intense collaborative exposure to female colleagues reduces discriminatory attitudes: Male soldiers who were randomly assigned to share room and work in a squad with female soldiers during the recruit period do not discriminate in the vignette experiment.

• Ilboudo, Patrick Christian Gueswende; Greco, Giulia; Sundby, Johanne & Torsvik, Gaute (2016). Estimating the costs for the treatment of abortion complications in two public referral hospitals: A cross-sectional study in Ouagadougou, Burkina Faso. BMC Health Services Research. 16(1), p. 1–10. doi: 10.1186/s12913-016-1822-7. Full text in Research Archive Show summary

  Background: Treatment costs of induced abortion complications can consume a substantial amount of hospital resources. This use of hospitals scarce resources to treat induced abortion complications may affect hospitals’ capacities to deliver other health care services. In spite of the importance of studying the burden of the treatment of induced abortion complications, few studies have been conducted to document the costs of treating abortion complications in Burkina Faso. Our objective was to estimate the costs of six abortion complications including incomplete abortion, hemorrhage, shock, infection/sepsis, cervix or vagina laceration, and uterus perforation treated in two public referral hospital facilities in Ouagadougou and the cost saving of providing safe abortion care services. Methods: The distribution of abortion-related complications was assessed through a review of postabortion care-registers combined with interviews with key informants in maternity wards and in hospital facilities. Two structured questionnaires were used for data collection following the perspective of the hospital. The first questionnaire collected information on the units and the unit costs of drugs and medical supplies used in the treatment of each complication. The second questionnaire gathered information on salaries and overhead expenses. All data were entered in a spreadsheet designed for studying abortion, and analyses were performed on Excel 2007. Results: Across six types of abortion complications, the mean cost per patient was USD45.86. The total cost to these two public referral hospital facilities for treating the complications of abortion was USD22,472.53 in 2010 equivalent to USD24,466.21 in 2015. Provision of safe abortion care services to women who suffered from complications of unsafe induced abortion and who received care in these public hospitals would only have cost USD2,694, giving potential savings of more than USD19,778.53 in that year. Conclusions: The treatment of the complications of abortion consumes a significant proportion (up to USD22,472.53) of the two public hospitals resources in Burkina Faso. Safe abortion care services may represent a cost beneficial alternative, as it may have saved USD19,778.53 in 2010.

• Ilboudo, Patrick Christian Gueswende; Greco, Giulia; Sundby, Johanne & Torsvik, Gaute (2015). Costs and consequences of abortions to women and their households: A cross-sectional study in Ouagadougou, Burkina Faso. Health Policy and Planning. ISSN 0268-1080. 30(4), p. 500–507. doi: 10.1093/heapol/czu025. Full text in Research Archive Show summary

  Little is known about the costs and consequences of abortions to women and their households. Our aim was to study both costs and consequences of induced and spontaneous abortions and complications. We carried out a cross-sectional study between February and September 2012 in Ouagadougou, the capital city of Burkina Faso. Quantitative data of 305 women whose pregnancy ended with either an induced or a spontaneous abortion were prospectively collected on sociodemographic, asset ownership, medical and health expenditures including pre-referral costs following the patient’s perspective. Descriptive analysis and regression analysis of costs were performed. We found that women with induced abortion were often single or never married, younger, more educated and had earlier pregnancies than women with spontaneous abortion. They also tended to be more often under parents’ guardianship compared with women with spontaneous abortion. Women with induced abortion paid much more money to obtain abortion and treatment of the resulting complications compared with women with spontaneous abortion: US89 (44 252 CFA ie franc of the African Financial Community) vs US56 (27 668 CFA). The results also suggested that payments associated with induced abortion were catastrophic as they consumed 15% of the gross domestic product per capita. Additionally, 11–16% of total households appeared to have resorted to coping strategies in order to face costs. Both induced and spontaneous abortions may incur high expenses with short-term economic repercussions on households’ poverty. Actions are needed in order to reduce the financial burden of abortion costs and promote an effective use of contraceptives.

• Molander, Anders & Torsvik, Gaute (2015). Getting People into Work: What (if Anything) Can Justify Mandatory Activation of Welfare Recipients? Journal of Applied Philosophy. ISSN 0264-3758. 32(4), p. 373–392. doi: 10.1111/japp.12132. Full text in Research Archive
• Molander, Anders & Torsvik, Gaute (2015). Kan tvungen aktivering forsvares? In Bay, Ann-Helén; Hagelund, Anniken & Hatland, Aksel (Ed.), For mange på trygd? : Velferdspolitiske spenninger. Cappelen Damm Akademisk. ISSN 9788202494704. p. 38–61. Full text in Research Archive
• Dhillon, Amrita; Iversen, Vegard & Torsvik, Gaute (2015). Employee referral, social proximity and worker discipline: Theory and evidence from indiaú. Working Paper - Chr. Michelsen Institute. ISSN 0804-3639. 2015(1). Full text in Research Archive
• Munga, Michael Aloyce; Torsvik, Gaute & Mæstad, Ottar (2014). Using incentives to attract nurses to remote areas of Tanzania: a contingent valuation study. Health Policy and Planning. ISSN 0268-1080. 29(2), p. 227–236. doi: 10.1093/heapol/czt007. Full text in Research Archive
• Torsvik, Gaute; Molander, Anders; Tjøtta, Sigve & Kobbeltvedt, Therese (2011). Anticipated discussion and cooperation in a social dilemma. Rationality and Society. ISSN 1043-4631. 23(2), p. 199–216. doi: 10.1177/1043463111404664. Full text in Research Archive
• Ellingsen, Tore; Johannesson, Magnus; Torsvik, Gaute & Tjøtta, Sigve (2010). Testing guilt aversion. Games and Economic Behavior. ISSN 0899-8256. 68(1), p. 95–107. Full text in Research Archive
• Iversen, Vegard & Torsvik, Gaute (2010). Networks, middlemen and other (urban) labour market mysteries. Indian Growth and Development Review. ISSN 1753-8254. 3(1), p. 62–80. doi: 10.1108/17538251011035882. Full text in Research Archive
• Mæstad, Ottar; Torsvik, Gaute & Aakvik, Arild (2010). Overworked? On the relationship between workload and health worker performance. Journal of Health Economics. ISSN 0167-6296. 29(5), p. 686–698. doi: 10.1016/j.jhealeco.2010.05.006. Full text in Research Archive
• Ellingsen, Tore; Johannesson, Magnus; Tjøtta, Sigve & Torsvik, Gaute (2010). Testing guilt aversion. Games and Economic Behavior. ISSN 0899-8256. 68(1), p. 95–107. doi: 10.1016/j.geb.2009.04.021. Full text in Research Archive

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• Torsvik, Gaute (2006). Människonatur och samhällsstruktur; en kritisk introduktion till ekonomisk teori. Daidalos. ISBN 9789171732392. 245 p. Full text in Research Archive Show summary

  Originalutg: Menneskenatur og samfunnsstruktur : ein kritisk introduksjon til økonomisk teori. Oslo, Samlaget 2003.

• Bjørnenak, Trond; Dalen, Dag Morten; Dalen, Dag Morten; Fehr, Nils-H. M. Von der; Olsen, Trond E. & Torsvik, Gaute (2005). På like vilkår? Analyse av konkurranse mellom offentlige og private foretak. Konkurransetilsynet. Full text in Research Archive

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• Mogstad, Magne; Torsvik, Gaute; Salvanes, Kjell Gunnar & Fettig, David (2025). Income Equality in the Nordic Countries: Myths, Facts, and Lessons. doi: https:/bfi.uchicago.edu/insights/income-equality-in-the-nordic-countries-myths-facts-and-lessons/. Full text in Research Archive
• Mogstad, Magne; Salvanes, Kjell Gunnar & Torsvik, Gaute (2025). The Nordic model and income equality: Myths, facts, and policy lessons. http://www.voxeu.org/. doi: https:/cepr.org/voxeu/columns/nordic-model-and-income-equality-myths-facts-and-policy-lessons. Full text in Research Archive
• Schreiner, Ragnhild Camilla & Torsvik, Gaute (2025). Moral og økonomi i sykelønnsordningen | DN. Full text in Research Archive Show summary

  Sykelønnsordningen handler først og fremst om økonomiske prioriteringer. Alexander W. Cappelens argumenter er mer tilslørende enn oppklarende.

• Markussen, Simen; Bensnes, Simon Søbstad; Hernæs, Øystein Marianssønn; Håvarstein, Morten; Mogstad, Magne & Raaum, Oddbjørn [Show all 7 contributors for this article] (2025). Hva koster egentlig en skattelette til personer med lav inntekt? doi: https:/www.dn.no/innlegg/okonomi/eksperiment/skatt/hva-koster-egentlig-en-skattelette-til-personer-med-lav-inntekt/2-1-1835500. Full text in Research Archive
• Bensnes, Simon Søbstad; Hernæs, Øystein Marianssønn; Markussen, Simen; Raaum, Oddbjørn; Håvarstein, Morten & Mogstad, Magne [Show all 7 contributors for this article] (2025). Vi trenger 100.000 som får arbeidsfradrag i forsøket. doi: https:/www.dn.no/innlegg/skatt/sysselsetting/arbeid/vi-trenger-100000-som-far-arbeidsfradrag-i-forsoket/2-1-1831957. Full text in Research Archive
• Bensnes, Simon Søbstad; Hernæs, Øystein Marianssønn; Raaum, Oddbjørn; Markussen, Simen; Mogstad, Magne & Torsvik, Gaute [Show all 7 contributors for this article] (2025). Ja til en mer kunnskapsbasert skattepolitikk. Full text in Research Archive
• Bensnes, Simon Søbstad; Raaum, Oddbjørn; Hernæs, Øystein Marianssønn; Markussen, Simen; Mogstad, Magne & Håvarstein, Morten [Show all 7 contributors for this article] (2025). Skattejoker Nord? Aftenposten vil kanskje innse at den møter seg selv i døren. Full text in Research Archive
• Mogstad, Magne; Schreiner, Ragnhild Camilla & Torsvik, Gaute (2024). Debatt: Ingen god grunn til å beholde ekstra arbeidsgiveravgift. Full text in Research Archive Show summary

  Steinar Holden og Knut Røed har et svakt faglig grunnlag for sitt forslag om å beholde den midlertidige ekstra arbeidsgiveravgiften.

• Mogstad, Magne & Torsvik, Gaute (2022). Family Background, Neighborhoods and Intergenerational Mobility. NBER Working Paper Series. ISSN 0898-2937. doi: 10.3386/w28874. Full text in Research Archive Show summary

  This paper reviews the literature on intergenerational mobility. While our review is centered around the large empirical literature on this topic, we also give a brief discussion of some of the relevant theory. We consider three strands of the empirical literature. First, we discuss how to measure intergenerational persistence in various socio-economic outcomes. We discuss both measurement challenges and some notable findings. We then turn to quantifying the importance of family environment and genetic factors for children's outcomes. We describe the pros and cons of various approaches as well as key findings. The third strand is concerned with drawing causal inferences about how children's outcomes are affected by specific features of their family environment. We discuss a wide range of environmental features, including the neighborhoods in which children grow up. We critically assess what conclusions one may and may not draw from certain celebrated studies of neighborhoods and intergenerational mobility.

• Harding, Torfinn; Mogstad, Magne; Storesletten, Kjetil & Torsvik, Gaute (2022). Trenger vi en eiertrygd? Full text in Research Archive
• Graber, Michael; Mogstad, Magne; Torsvik, Gaute & Vestad, Ola Lotherington (2022). Behavioral responses to income taxation in Norway. Memorandum from Department of Economics, University of Oslo. ISSN 0809-8786. Full text in Research Archive
• Terum, Lars Inge; Torsvik, Gaute & Molander, Anders (2021). Forståinga av mottakarane er viktig for sanksjonspraksis i Nav. Full text in Research Archive
• Torsvik, Gaute (2021). Does Perceived Risk of Future Audits Explain the Behavioral Effects of Tax Enforcement? Full text in Research Archive
• Torsvik, Gaute (2021). Skatt og ulikhet II. Full text in Research Archive
• Torsvik, Gaute (2021). Skole og ulikhet. Full text in Research Archive
• Torsvik, Gaute (2021). Skatt og ulikhet. Full text in Research Archive
• Torsvik, Gaute (2018). Compliance effects of risk based audits. Full text in Research Archive
• Torsvik, Gaute (2018). Gylne tider i finans. Samfunnsøkonomen. ISSN 1890-5250. Full text in Research Archive
• Torsvik, Gaute (2018). Tax compliance of targeted audits. Full text in Research Archive
• Torsvik, Gaute (2018). Paying for personal productivity increases the gender gap in income. Full text in Research Archive
• Andersson, Lars Jonas; Schroyen, Fred & Torsvik, Gaute (2018). A dynamic binomial model with application to the propensity to use tax amnesty. Full text in Research Archive
• Andersson, Lars Jonas; Schroyen, Fred & Torsvik, Gaute (2018). A dynamic binomial model with application to the propensity to use tax amnesty. Full text in Research Archive Show summary

  In the talk, a model to study the effects of announcement and implementation of international tax information agreements on thepropensity to use the Norwegian tax amnesty will be introduced and studied. The model is based on the binomial distribution with a dynamic for which the initial value has to be estimated. The model is also extended to a panel version.

• Torsvik, Gaute (2017). A dynamic model of tax amnesty. Full text in Research Archive
• Torsvik, Gaute (2017). Handler økonomi berre om penger. Full text in Research Archive
• Torsvik, Gaute (2017). Verdier og motivasjon. Full text in Research Archive
• Binyaruka, Peter John; Torsvik, Gaute; Robberstad, Bjarne & Borghi, Jo (2017). Who benefits From Increased Service Utilization: Examining The Distributional Effects Of Payment For Performance in Tanzania. Full text in Research Archive
• Torsvik, Gaute (2017). A dynamic model of tax amnesty. Full text in Research Archive
• Torsvik, Gaute (2017). SSB-saka: I have seen the future of Rock and Roll and it is not Leonard Cohen. Dagens næringsliv. ISSN 0803-9372. Full text in Research Archive
• Torsvik, Gaute (2017). Effekten av fleire lærarar, tru håp eller kunskap. Samfunnsøkonomen. ISSN 1890-5250. Full text in Research Archive
• Torsvik, Gaute; Andersson, Jonas & Schroyen, Fred (2016). Hvorfor ha skatteamnesti? p. 12–12. Full text in Research Archive
• Torsvik, Gaute (2015). Measuring intrinsic motivation. Full text in Research Archive
• Binyaruka, Peter John; Torsvik, Gaute; Mæstad, Ottar; Robberstad, Bjarne & Borghi, Jo (2015). Equity effects of the Pay-for-Performance scheme among health facilities in Tanzania. Full text in Research Archive
• Hagen, Rune Jansen & Torsvik, Gaute (2015). Global Economics and National Politics. Full text in Research Archive
• Patoulliard, E; Torsvik, Gaute; Powell-Jackson, Timothy; Binyaruka, Peter John & Borghi, Jo (2015). Pay-for-performance and health workers? intrinsic motivation in one region of Tanzania. Full text in Research Archive
• Borghi, Jo; Binyaruka, Peter John; Mæstad, Ottar; Torsvik, Gaute & Mtei, Gemini (2015). Long term effects of Payment for Performance on Health Services in Tanzania. Full text in Research Archive
• Torsvik, Gaute (2015). Demokrati, statsinstitusjoner og velferd. Nytt Norsk Tidsskrift (NNT). ISSN 0800-336X. p. 179–183. Full text in Research Archive
• Torsvik, Gaute (2014). Pay for performance in the health sector. Full text in Research Archive
• Torsvik, Gaute (2014). Gender, productivity and sickness absence. Full text in Research Archive
• Torsvik, Gaute (2014). Større fridom = meir velferd? Full text in Research Archive
• Torsvik, Gaute (2014). Trust and sickness absence. Full text in Research Archive
• Torsvik, Gaute (2014). Group Creativity and Incentives. Full text in Research Archive
• Torsvik, Gaute (2014). Trust and sickness absence. Full text in Research Archive
• Torsvik, Gaute (2014). Trust and sickness absence. Full text in Research Archive
• Torsvik, Gaute (2013). Kapasitet og kvalitet. Full text in Research Archive
• Torsvik, Gaute (2010). Tillit og økonomi. Nytt Norsk Tidsskrift (NNT). ISSN 0800-336X. 27(3), p. 321–325. Full text in Research Archive
• Kobbeltvedt, Therese; Tjøtta, Sigve & Torsvik, Gaute (2009). Sharing of resources: Psychological predispositions and behaviour in economic dilemmas. Full text in Research Archive
• Kobbeltvedt, Therese; Tjøtta, Sigve & Torsvik, Gaute (2009). Sharing of resources: The interplay of individual difference and social distance. Full text in Research Archive
• Kobbeltvedt, Therese; Tjøtta, Sigve & Torsvik, Gaute (2009). Sharing of resources: The interplay of individual difference and social distance. Full text in Research Archive
• Kobbeltvedt, Therese; Torsvik, Gaute & Tjøtta, Sigve (2009). Sharing of resources: Psychological predispositions and behaviour in economic dilemmas. Full text in Research Archive
• Kobbeltvedt, Therese; Tjøtta, Sigve & Torsvik, Gaute (2008). Beyond social proximity: Psychological predispositions and regulatory focus in social dilemmas. Full text in Research Archive
• Tjøtta, Sigve & Torsvik, Gaute (2006). Behavioral Game theory - experiments to identify individual motivation in situations with strategic interaction. Full text in Research Archive
• Graber, Michael; Håvarstein, Morten; Mogstad, Magne; Torsvik, Gaute & Vestad, Ola L. (2026). Substitution and Income Effects of Labor Income Taxation. National Bureau of Economic Research. doi: 10.3386/w34987. Full text in Research Archive
• Graber, Michael; Håvarstein, Morten; Mogstad, Magne; Torsvik, Gaute & Vestad, Ola L. (2026). Substitution and Income Effects of Labor Income Taxation. National Bureau of Economic Research. doi: 10.3386/w34987. Full text in Research Archive Show summary

  The elasticity of taxable income (ETI) parameter is a key quantity in empirical analysis of tax policy and labor supply. We examine when a commonly applied class of ETI estimands can be used to learn about individuals’ ETI parameters and their (un)compensated elasticities of labor supply. We begin by providing necessary and sufficient conditions for these estimands to be given a causal interpretation as a positively weighted average of heterogeneous ETI parameters. We then apply these results to empirically analyze a reform of the Norwegian tax system that reduced the marginal tax rates on middle and high incomes. The estimated ETI parameters increase steadily with income, meaning high-income individuals are more responsive to tax changes than middle-income individuals. Next, we show how (un)compensated elasticities of labor supply can be bounded directly from the ETI estimands, or point identified by combining these estimands with estimates of earnings responses to lottery winnings. The results suggest an (un)compensated elasticity of 0.1 (0.0) for middle-income individuals. The (un)compensated elasticity estimates increase steadily with income to around 0.45 (0.3) for high-income individuals. These findings imply a substantial excess burden of taxation, and that reducing top-income tax rates would increase tax revenue. Our findings are also informative about how the intertemporal elasticity of substitution and the Frisch elasticity vary across the income distribution.

• Mogstad, Magne; Salvanes, Kjell Gunnar & Torsvik, Gaute (2025). Income Equality in The Nordic Countries: Myths, Facts, and Lessons. Institutt for samfunnsøkonomi. Full text in Research Archive Show summary

  Policymakers, public commentators, and researchers often cite the Nordic countries as examples of a social and economic model that successfully combines low income inequality with prosperity and growth. This article aims to critically assess this claim by integrating theoretical perspectives and empirical evidence to illustrate how the Nordic model functions and why these countries experience low inequality. Our analysis suggests that income equality in the Nordics is primarily driven by a significant compression of hourly wages, reducing the returns to labor market skills and education. This appears to be achieved through a wage bargaining system characterized by strong coordination both within and across industries. This finding contrasts with other commonly cited explanations for Nordic income equality, such as redistribution through the taxtransfer system, public spending on goods that complement employment, and public policies aimed at equalizing skills and human capital distribution. We consider the potential lessons for other economies that seek to reduce income equality. We conclude by discussing several underexplored or unresolved questions and issues.

• Andersson, Jonas; Schroyen, Fred & Torsvik, Gaute (2019). The impact of international tax information exchange agreements on the use of tax amnesty: evidence from Norway. Norges Handelshøyskole. Full text in Research Archive Show summary

  In this paper we develop a model for tax amnesty applications in a multi-period setting. One key insight from the model is that applying for amnesty becomes more attractive at the moment when stricter enforcement is announced, even if the implementation of the policy is in the distant future. We use our model to make sense of how international tax information exchange agreements affects voluntary disclosure of wealth and income previously hidden in tax havens. Our data is from Norway. In accordance with the dynamic amnesty model we observe a strong announcement effect of a tax information exchange agreement between Norway and Switzerland and Luxembourg, the two most important tax havens for Norwegian tax evaders. However, the effect levels off very quickly, much faster than our model predicts. We think this is because the initial announcement of the tax agreement exaggerated the risk the agreement imposed to those who had hidden taxable income and wealth in Switzerland. We also estimate and find significant effects of the press releases the Norwegian Tax Authority issues to inform taxpayers about new international tax agreements and the amnesty, or voluntary disclosure, option that exists in the Norwegian tax code.

• Andersson, Jonas; Schroyen, Fred & Torsvik, Gaute (2019). The impact of international tax information exchange agreements on the use of tax amnesty: evidence from Norway. Norges Handelshøyskole. Institutt for foretaksøkonomi. Full text in Research Archive Show summary

  In this paper we develop a model for tax amnesty applications in a multi-period setting. One key insight from the model is that applying for amnesty becomes more attractive at the moment when stricter enforcement is announced, even if the implementation of the policy is in the distant future. We use our model to make sense of how international tax information exchange agreements affects voluntary disclosure of wealth and income previously hidden in tax havens. Our data is from Norway. In accordance with the dynamic amnesty model we observe a strong announcement effect of a tax information exchange agreement between Norway and Switzerland and Luxembourg, the two most important tax havens for Norwegian tax evaders. However, the effect levels off very quickly, much faster than our model predicts. We think this is because the initial announcement of the tax agreement exaggerated the risk the agreement imposed to those who had hidden taxable income and wealth in Switzerland. We also estimate and find significant effects of the press releases the Norwegian Tax Authority issues to inform taxpayers about new international tax agreements and the amnesty, or voluntary disclosure, option that exists in the Norwegian tax code.

• Løyland, Knut; Raaum, Oddbjørn; Torsvik, Gaute & Øvrum, Arnstein (2019). Compliance effects of risk based audits. CESifo. Full text in Research Archive
• Binyaruka, Peter John; Torsvik, Gaute & Robberstad, Bjarne (2018). Distributional effects of payment for performance in the health sector. Examining effects on structural quality, performance outcomes and service utilisation in Tanzania. Universitetet i Bergen. ISSN 9788230836378. Full text in Research Archive Show summary

  Introduction: Payment for performance (P4P) involves the allocation of financial incentives to health workers and/or facilities for reaching pre-defined performance targets or measures. P4P has been used in high-income countries (HICs) to improve healthcare quality, and recently has been applied in low-and middle-income countries (LMICs) to improve the coverage and quality of health services and strengthen health systems. The available evidence on the effect of P4P is mixed, but with some promising results of improvements in the incentivised indicators. However, most evaluations of P4P have focused on average programme effects on the incentivised services, paying little attention to distributional effects of P4P. Specifically, little is known about the effects of P4P on structural quality of care (e.g. availability of medical commodities), and similarly on the understanding of the heterogeneity of the P4P effects among subgroups of providers and populations. This PhD work aims to fill that knowledge gap. It estimates the effect of P4P on the availability and stock-out of medical commodities, and examine the differential effects of P4P across subgroups of health facilities and populations in Tanzania. Data sources: The study collected data in intervention and control areas through facility and household surveys, and facility payments data from administrative records. Baseline data were collected in January 2012 with a follow-up 13 months later. Facility survey across 150 facilities (75 facilities from each study arm) included data on the availability and stock-out of medical commodities (drugs, supplies and equipment), and facility characteristics. Household survey across 3000 women who delivered within 12 months prior to the survey (20 women per facility catchment area), and a similar sample size in the follow-up survey, captured information about individual and household characteristics and maternal and child health service utilisation. Analyses: A difference-in-differences (DID) regression model was used to estimate the average effects of P4P on the availability and stock-out of medical commodities (Paper I). The DID model was further extended by including a three-way interaction term (i.e. average effect and subgroup indicator) to capture the differential effects of P4P across facilities’ subgroups (Paper I and II), and across populations subgroups (Paper III). Assessment of differential effects were based on outcomes which improved significantly due to P4P (i.e. availability of drugs and supplies, institutional delivery rates and uptake/ provision of antimalarial drugs during antenatal care (ANC)). Descriptive measures of inequality were also used to assess the distribution of facility payouts across facilities’ subgroups (Paper II). Results: Paper I reports that P4P improved the availability of drugs and supplies and reduced their stock-out rates, but had no effect on the availability of medical equipment. The improved effects were generally similar across facilities, but relatively higher among facilities serving a poor population and located in rural areas. Paper II finds that facility payments were initially higher among higher level facilities (hospitals and health centres than dispensaries), the better resourced than worse resourced facilities, and facilities serving wealthier than poorer populations, but these inequalities in payouts declined over time. The effect of P4P on institutional delivery rates was greater among facilities with low baseline performance, serving middle wealth populations, located in rural areas, than among their counterparts; whereas the effect on provision of antimalarial drugs was similar across facilities subgroups. Paper III finds that the effect of P4P on institutional deliveries was greater among women in the poorest households, who lived in rural areas and who did not have health insurance than among their counterparts. P4P effect on the uptake of antimalarial drugs was equally distributed across population subgroups. Conclusion: The study findings suggest that the P4P programme can improve structural quality of care in terms of the availability of medical commodities. It can further enhance more equitable performance among facilities as the worse-off providers improved most in this study. Similarly, P4P can enhance equitable service utilisation since the service use increased mostly among the worse-off populations.

• Aakvik, Arild; Johnsen, Julian Vedeler & Torsvik, Gaute (2018). Pregnancy, Parenthood and Productivity. Universitetet i Bergen. Full text in Research Archive Show summary

  Parenthood is a key determinant of the gender gap in career outcomes. However, the exact mechanisms behind this relationship are only partially uncovered: While previous research shows that parenthood is associated with a decline in work hours of female employees, there is scarce evidence on the impact of parenthood on female worker productivity. Using detailed data on worker productivity for 400+ employees in the customer service center of an insurance company in Norway, we first document a gender gap in work hours, productivity and earnings. We then analyze the impact of pregnancy and parenthood on female worker productivity. Weekly work-hours falls sharply during pregnancy, and never recovers to its pre-pregnancy levels. However, when accounting for this drop in actual work-hours, there is no effect of pregnancy and parenthood on female worker productivity.

• Vikesund, Kristina & Torsvik, Gaute (2018). Lønnsadelen i Norge 1865 til 2014. Universitetet i Bergen. Full text in Research Archive
• Strømland, Eirik Andre; Tjøtta, Sigve & Torsvik, Gaute (2016). Cooperating, Fast and Slow: Testing the Social Heuristics Hypothesis. CESifo. Full text in Research Archive
• Torsvik, Gaute & Vaage, Kjell (2016). Skipping the doctor: Evidence from a case with extended self-certification of sickness absence. Universitetet i Bergen. Full text in Research Archive
• Aakvik, Arild & Torsvik, Gaute (2015). Productivity Dynamics and Sickness Absence around Childbirth. Universitetet i Bergen. Full text in Research Archive
• Torsvik, Gaute & Vaage, Kjell (2014). Gatekeeping versus monitoring: Evidence From a Case With Extended Self-Reporting of Sickness Absence. Universitetet i Bergen. Full text in Research Archive
• Torsvik, Gaute (2014). Extended self certification of sickness absence. Cesifo. Full text in Research Archive
• Molander, Anders & Torsvik, Gaute (2013). Getting People into work: What (if anything) can justify mandatory activation of welfare recipients? Universitetet i Bergen. Full text in Research Archive
• Tjøtta, Sigve; Torsvik, Gaute; Kobbeltvedt, Therese & Molander, Anders (2008). The role of anticipated discussion on cooperation in a social dilemma. Working papers in Economics No:8/11. Full text in Research Archive
• Aarbu, Karl Ove & Torsvik, Gaute (2007). Pay and performance in a call centre; principals and agents or principally angels? Norges Handelshøyskole. Full text in Research Archive Show summary

  We use data from a pay reform in an insurance company to contrast different theories of work motivations. The management installed performance pay to boost sales in the customer service centre of the company. The reform was successful. The bonus scheme gave the operators both self-regarding and other-regarding incentives to increase sales. The increase in sales does therefore not in itself help us identify the underlying motivation of the workers. However, when we examine the evolution of the design and impact of the scheme, we conclude that the standard principal-agent model best explains the patterns in our data.

• Hagen, Rune Jansen & Torsvik, Gaute (2007). Irreversible Investments, Dynamic Inconsistency, and Policy Convergence. Institutt for økonomi, Universitetet i Bergen. Full text in Research Archive

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