IDEAS home Printed from
   My bibliography  Save this paper

Luxemburg's corporatist Scandinavian welfare system and incorporation of migrants


  • AMETEPE Kossi


Luxembourg is the EU and OECD member state (MS) with a permanently increasing immigra-tion and the highest share of immigrants and cross border commuters within the labour force and more so within the competitive sector. Luxembourg has a typical Bismarckian corporatist welfare system, which has developed a gener-ous and broad welfare regime over the last 100 years with a further important push during the last two decades. Since then, benefits offered muted steadily to middle class standards and providers were merged to universalistic national bodies, leaving behind the different former corporatist providers. Due to a higher dependency on welfare benefits due to the economic downturn, nearly all MS modified from the 1970s onwards their original systems, mostly in the sense of a liberalization with cutbacks in comparison to the former more generous provisions. There has been a shift in responsibility from the state to the individual citizen via different means such as a non-increase of benefits, restricting eligibility (re-commodification), restructuring schemes in a radical way (recalibration) and cost containment measures (Pierson, 2001). Luxembourg however expanded and improved its system. What is the link between immigration and the outstanding evolution of the welfare system? The steady increase of young foreign contributors (immigrants and crossers) provided Luxem-bourg with the means to develop from a corporatist model to a Scandinavian with highest provi-sions, an emerging service sector and no significant retrenchment policy. Immigrants contribute, on average, more to the different welfare insurances than they use them, given their on average younger age, given a predominantly economic immigration and given higher employment rates than those of nationals.

Suggested Citation

  • HARTMANN HIRSCH Claudia & AMETEPE Kossi, 2011. "Luxemburg's corporatist Scandinavian welfare system and incorporation of migrants," LISER Working Paper Series 2011-29, LISER.
  • Handle: RePEc:irs:cepswp:2011-29

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Felix Büchel & Joachim R. Frick, 2004. "Immigrants in the UK and in West Germany –Relative income position, income portfolio, and redistribution effects," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(3), pages 553-581, August.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Migrants' incorporation; corporatist; universalistic welfare regime; Luxembourg; migrants' contribution;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:irs:cepswp:2011-29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Library and Documentation). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.