The State of the Luxembourg?s Welfare State: the Effects of the Crisis on a Corporatist Model Shifting to a Universalistic Model
AbstractLuxembourg was able to develop, enlarge and improve its corporatist welfare system with Scandinavian standards, creating one of, if not the most substantial regime in the EU/OECD. Several aspects are outstanding: expansion and improvement took place over the last two decades; important reserves for the pension insurance allowed replacement rates being on top within OECD countries; corporatist elements had been reduced in favour of a higher impact of the State; defamilzation took place, thus a significant recalibration. There is no experience of cutbacks or significant cost containment measures leading to losses and a higher responsibility for the insured. The question is, how did Luxembourg manage to increase and improve its welfare offer, while other developed countries have had to cutback since the 1970s? And what was the impact of the financial crisis on welfare policies up to the end of 2009. Luxembourg has the most regulated labour market within OECD, but also the most diversified in terms of migration and cross border movements. Two factors are commonly considered putting welfare systems under pressure: globalisation and ageing effects. Luxembourg avoided the last one via its permanently rejuvenating immigration and cross border movement: age- and family-member-dependency ratios are extremely low for cross border commuters compared to those of residents. The extremely transnationalised labour force might be considered as an implicit ?globalising? answer. This small nation-state used its sovereignty taking advantage of the imbrication of national and transnational (EU) law: crossers contribute fully, but are not fully entitled to benefits. Immigration is sometimes considered to be a threat to the sustainability of welfare schemes; in Luxembourg however immigrants and crossers were the main factors for expansion.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2010-44.
Length: 52 pages
Date of creation: Dec 2010
Date of revision:
Contact details of provider:
Postal: 3, avenue de la Fonte, L-4364 Esch-sur-Alzette, G.-D. Luxembourg
Phone: 00352 / 58 58 55 - 1
Fax: 00352 / 58 58 55 - 700
Web page: http://www.ceps.lu
More information through EDIRC
Luxembourg?s welfare system; Improvement; expansion; No cutback; Migration; Cross border movement;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Plasman & Danièle Meulders, 2001. "La place des femmes dans le monde du travail," ULB Institutional Repository 2013/7800, ULB -- Universite Libre de Bruxelles.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Begona Levices).
If references are entirely missing, you can add them using this form.