Luxembourg, like most other OECD countries, is facing the demographic challenge of an ageing population. However, given that it is a small country with a very large foreign population and an economy that relies heavily on a cross-border labour market, the ageing of its resident population has had little impact on its labour market so far. However this situation may change in coming decades if there is a trend towards negative net migration. In any case, it is likely that substantial...
More DescriptionLuxembourg, like most other OECD countries, is facing the demographic challenge of an ageing population. However, given that it is a small country with a very large foreign population and an economy that relies heavily on a cross-border labour market, the ageing of its resident population has had little impact on its labour market so far. However this situation may change in coming decades if there is a trend towards negative net migration. In any case, it is likely that substantial income transfers may be required of future generations of workers to meet the additional cost of pensions. This publication considers current trends and challenges, reforms required in the pensions system, employment and training practices, and the need to move away from an early retirement culture. The book is in French with an executive summary and recommendations in English and French.