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The Luxembourg Context: Push-Pull Factors

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Between Europeanisation and Renationalisation of the Free Movement of Persons

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Abstract

Using the push-pull model, we shed light on certain economic indicators and mechanisms “pertaining to inequality in a European cross-border context” (Faist, Population Space Place 21(3): 282–293, 2015: 284), which can be reasons for an emigration project and the choice of the destination country. Although many migrants do not know exact figures, they may unconsciously have a positive image of Luxembourg and rate the country higher than their own or other EU countries. This comparison will be continued in the following chapters, especially in Sect. 5 on Europeanisation, where we compare two types of social benefits. Overall, the aim here is not a comparative economic analysis, but rather we present data on various indicators that show strong differences and which may invite people to leave a southern Member State for a northern one, in this case Luxembourg.

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Notes

  1. 1.

    There is an important distinction to be made here (see Glossary) for a small country like Luxembourg: EU assessments (in the Lisbon Strategy or Europe 2020) are based on data on the national labour market; however, the domestic labour market is more meaningful in terms of economic performance.

  2. 2.

    Figures from 2016: Cf. STATEC: “Population by sex and nationality”. “Paid employment in the domestic market by country of residence and nationality”. “Employment status in the public sector” at: https://statistiques.public.lu/fr/population-emploi/index.html

  3. 3.

    STATEC: “Population by sex and nationality on 1 January”.

  4. 4.

    The proportion of migrants, and even more so of cross-border commuters, is responsible for this rejuvenation effect of the insured, which is unknown throughout Europe (Di Bartolomeo, 2009).

  5. 5.

    See MISSOC: Comparative tables and e.g. Sect. 5.1.2.

  6. 6.

    Source: STATEC: https://lustat.statec.lu/?fs[0]=Th%C3%A8mes%2C1%7CPopulation%20et%20emploi%23B%23%7CMarch%C3%A9%20du%20travail%23B5%23&pg=0&fc=Th%C3%A8mes

  7. 7.

    Source: STATEC: https://statistiques.public.lu/stat/TableViewer/tableView.aspx?ReportId=12951&IF_Language=fra&MainTheme=2&FldrName=3&RFPath=92

  8. 8.

    Source: EUROSTAT: Employees and labour force by age and gender [lfsi_emp_a]. Cf. Honig et al., 2015; Hartmann-Hirsch, 2010a.

  9. 9.

    According to regulation (EEC) 1408/71, they declare their unemployment in the country of residence from which they also receive unemployment benefits. Since 2012, with the entry into force of the new Regulation (EC) 883/2004 (in the other EU countries in 2010; in Luxembourg there was a transitional period extended until May 2012), European law provides that expenses for unemployment benefits for the first 3 months are reimbursed by the EU country of employment, the competent Member State, to the EU country of residence.

  10. 10.

    The period of notice and the amount of severance pay increase according to the length of employment (Art. L 521–14 of the Luxembourg Labour Code).

  11. 11.

    We do not address the specifics of the financing of these benefits (through contributions or taxes or both) with reference to Regulation (EC) 883/2004. The above data is only intended to highlight the potential incentives.

  12. 12.

    Cf. OECD data: Annual average wages (in US dollars): https://data.oecd.org/fr/earnwage/salaires-moyens.htm

  13. 13.

    With reference to the “welfare magnet” by Borjas, 1999; cf. Sect. 6.2.2.

  14. 14.

    In no other EU country is the difference between GNI and GDP so great. No other Member State has a comparable effect due to non-resident cross-border workers in employment. Only Ireland has a similarly large difference between the two indicators, at 15%, which is attributed to its very open economy with high foreign investment, but the commuting phenomenon does not exist. In 2008, the difference between GNI and GDP in Luxembourg was 25%, whereas in 1990 it was only 5%, with a low proportion of cross-border commuters at the time (STATEC, 2010: 100).

  15. 15.

    Cf. graph 34 in STATEC, 2011: 103; the United States rank first.

  16. 16.

    EUROSTAT: Poverty risk before transfers (including old-age and survivors’ pensions).

  17. 17.

    Data: Les chiffres clé de l’Education Nationale, Statistiques et Indicateurs, Luxembourg: https://statistiques.public.lu/fr/publications/thematique/conditions-sociales/chiffres-cles-education-2016/Chiffrescles201516.pdf

  18. 18.

    Persons who obtained Luxembourg nationality as a result of this law (of 23 October 2008) and who have held two nationalities since then are listed in official statistics only as Luxembourgers.

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Authors and Affiliations

  1. FHSE, Universität Luxemburg, Esch-Belval, Luxembourg

    Claudia Hartmann-Hirsch

  2. Social Statistics, STATEC, Luxemburg-Kirchberg, Luxembourg

    Fofo Senyo Amétépé

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  1. Claudia Hartmann-Hirsch
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  2. Fofo Senyo Amétépé
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Hartmann-Hirsch, C., Amétépé, F.S. (2023). The Luxembourg Context: Push-Pull Factors. In: Between Europeanisation and Renationalisation of the Free Movement of Persons. Springer VS, Wiesbaden. https://doi.org/10.1007/978-3-658-40814-5_3

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  • DOI: https://doi.org/10.1007/978-3-658-40814-5_3

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