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Socio-Economic Review 2:263-283 (2004)
© Oxford University Press and the Society for the Advancement of Socio-Economics 2004. All rights reserved.

Poverty and income inequality in Luxembourg and the Grande Région in comparative perspective

Serge Allegrezza1, Georges Heinrich2 and David Jesuit3

1 Service Central de la Statistique et des Etudes Economiques (STATEC), B.P. 304, L-2013 Luxembourg, 2 Ministère des Finances, 3, rue de la Congrégation, L-2931 Luxembourg and 3 Department of Political Science, Central Michigan University, Anspach 313B Mt Pleasant, MI 48859, USA

Correspondence: jesui1dk{at}cmich.edu

This paper adopts a comparative framework and examines rates of poverty and income inequality for Luxembourg between the mid-1980s and 2000. A dataset for the Grande Région, which combines data from four countries, is also constructed in order to perform cross- and inter-regional analyses. We find that levels of poverty and income inequality in Luxembourg are among the lowest in the world and that the ‘depth’ of poverty is comparatively low. In addition, we examine the so-called trade-off between growth and inequality and conclude that the mix of ‘pro-growth’ and ‘pro-poor’ policies is appropriate in Luxembourg. When examining the Grande Région, we show that Luxembourg stands apart as one of the richest regions in Europe and that disposable incomes in Luxembourg are some 70% higher than in the neighbouring regions. Finally, we conclude with a discussion on Luxembourg's social policy and call for improvements to the data currently available.

Key Words: poverty • income inequality • economic growth • elderly poverty • child poverty • regional inequality • international comparisons • JEL classification: C810 Methodology for Collecting, Estimating, and Organizing Microeconomic Data, J300, Wages, Compensation, and Labor Costs: General


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