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A recent study by the Luxembourg Central Bank shows that cross-border workers in Luxembourg face significant income and wealth gaps compared to residents, with French workers earning the least and Belgian workers earning the most.
A study published this week by the Central Bank of Luxembourg (BCL) provides new insights into the financial situation of cross-border workers. The study, published on Monday, analyses the wealth of cross-border workers in Luxembourg based on data collected in 2021 from 2,000 households in the Grand Duchy.
BCL found that cross-border workers mainly live in their country of birth, with most living with a partner. These workers tend to be younger than Luxembourg residents, with an average age of 41. Notably, they also have a higher level of education. 60% of cross-border workers have at least three years of higher education, compared to 50% of Luxembourg residents.
The study shows that cross-border workers are mainly employed in the private sector, in commerce, transport, accommodation, industry, and financial and insurance activities. In contrast, only a small proportion (about 10%) are employed in the public sector.
French cross-border workers earn the lowest
The BCL study also estimated the median total income of cross-border workers, revealing significant differences. French cross-border workers have the lowest median income, earning €60,800 in 2021. This figure suggests that half of French cross-border workers earn less than this amount, while the other half earn more. In comparison, the median income of Belgian cross-border workers is €79,400 and that of German cross-border workers is €79,500.
Cross-border workers generally have lower levels of wealth, such as housing, cars, other property, savings and financial assets, compared to Luxembourg residents. The average wealth of cross-border workers is €291,000, but there are large differences between countries.
Belgian cross-border workers have the highest average wealth at €345,000, followed by Germans at €327,000 and the French at €250,000. In contrast, Luxembourg residents have an average wealth of €561,000.
Despite having less overall wealth, cross-border workers are better off financially than their non-Luxembourg neighbours. They earn more and are more likely to own property. Among cross-border workers, 76% of Belgians own property, compared with 68% of French and 64% of Germans.
The BCL study also found that cross-border workers tend to be more indebted than other Europeans, a phenomenon attributed to their greater ability to borrow for shopping.
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