Quality of Life Index in Norway

Ole-Kristian Kleivan Skjong

Student thesis: Master thesis


The thesis estimates the quality-of-life (QOL) index for Norwegian municipalities. By using the Rosen-Roback framework, extended by Albouy (2008), it finds that the QOL index is higher in urban areas, like the capital of Oslo. This means that Norwegian citizens find urban amenities highly attractive. It is also found that high QOL index municipalities have both higher population growth and housing prices, while rural municipalities often have the opposite. By running a multivariate regression on the quality-of-life (QOL) index with respect to different amenities, it is found that higher education, recreational outdoor area, accessibility and number of hospitality workers have a positive correlation with the QOL index. In contrast, population density is found to have a negative correlation with the QOL index. This can be interpreted as higher density giving higher levels of pollution and noise. Crime is found to be irrelevant for the QOL index, which most likely is due to the low crime levels in Norway. Overall, the results are in line with the existing literature

EducationsMSc in Applied Economics and Finance, (Graduate Programme) Final Thesis
Publication date2021
Number of pages83
SupervisorsIsmir Mulalic