Luxembourg

Did You Know?

Population
0.5
mil.
Visitors per year
0.9
mil.
Renewable energy
2.93
%

How’s Life?

Luxembourg performs very well in many measures of well-being, as shown by the fact that it ranks among the top countries in several topics in the Better Life Index.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Luxembourg, the average household earned an estimated 44 212 USD in 2008, the highest figure in the OECD. The average is 22 284 USD.

In terms of employment, nearly 65% of people aged 15 to 64 in Luxembourg have a paid job. People in Luxembourg work 1601 hours a year, less than in other OECD countries. 57% of mothers are employed after their children begin school, suggesting that women encounter difficulties when balancing family and career.

Having a good education is an important requisite to finding a job. In Luxembourg, 68% of adults aged 25 to 64 have earned the equivalent of a high-school diploma, close to the OECD average. As to the quality of its educational system, the average student scored 472 out of 600 in reading ability according to the latest PISA student-assessment programme, lower than the OECD average.

In terms of health, life expectancy at birth in Luxembourg is 80.6 years, more than one year above the OECD average. The level of atmospheric PM10 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 13 micrograms per cubic meter, and is much lower than levels found in most OECD countries.

Concerning the public sphere, there is a strong sense of community but low levels of civic participation in Luxembourg. 95% of people believe that they know someone they could rely on in a time of need, higher than the OECD average of 91%. Voter turnout, a measure of public trust in government and of citizens' participation in the political process, was 57% during recent elections; this figure is lower than the OECD average of 72%. In regards to crime, 4% of people reported falling victim to assault over the previous 12 months.

When asked, 66% of people in Luxembourg said they were satisfied with their life, above the OECD average of 59%.

These findings are based on data from 2008 or later.

Topics

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Luxembourg in Detail

Housing

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In many OECD countries, home ownership is an important dimension of individual well-being. It protects owners from fluctuations in rents and ensures families a stable and secure shelter. Additionally, the value of a property represents a major source of wealth for households. According to data collected from 23 OECD countries, nearly 67% of occupied dwellings in the OECD are inhabited by the owners themselves.

In addition to measuring home ownership rates, it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities.

The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and the development of children. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Luxembourg, the average home contains 1.9 rooms per person, more than the OECD average of 1.6 rooms per person. In terms of basic facilities, 0.8% of dwellings in Luxembourg lack private access to indoor flushing toilets, much less than the OECD average of 2.8% dwellings.

Indicators

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Income

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Key Findings

While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, healthcare and housing.

Household net-adjusted disposable income is the amount of money that a household earns each year after tax. It represents the money available to a household for spending on goods or services. In Luxembourg, the average household net-adjusted disposable income is estimated at 44 212 USD a year, much higher than the OECD average of 22 284 USD and the highest figure in the OECD.

Household financial wealth is the total value of a household’s financial worth. In Luxembourg, the average household wealth is estimated at 200 797 USD, much higher than the OECD average of 36 808 USD and by far the highest figure in the OECD. While the ideal measure of household wealth should include real assets (e.g. land and dwellings), such information is currently available for only a small number of OECD countries.

Data for household net-adjusted disposable income and household financial wealth in Luxembourg rely on OECD estimates. These figures will be updated as official information becomes available.

Indicators

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Jobs

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Key Findings

Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one’s own aspirations, building self-esteem and developing skills and competencies. In Luxembourg, nearly 65% of the working-age population aged 15 to 64 has a paid job. This figure is close to the OECD employment average of 65%.

Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Luxembourg, the percentage of the labour force that has been unemployed for a year or longer is currently at 1.29%, lower than the OECD average.

Indicators

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Community

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Key Findings

Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.

A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities.

Conversely, a weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. In Luxembourg, 95% of people believe that they know someone they could rely on in a time of need, higher than the OECD average.

Indicators

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Education

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Key Findings

A well-educated and well-trained population is essential for a country’s social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Most concretely, having a good education greatly improves the likelihood of finding a job and earning enough money. Across OECD countries, men with university-level degrees are 16% more likely to find jobs, and women are 30% more likely. Lifetime earnings also increase with each level of education.

Following a decline in manual labour over previous decades, employers now favour a more educated labour force. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market.

In Luxembourg, 68% of adults aged 25-64 have earned the equivalent of a high-school degree, close to the OECD average of 73%. However, among younger people – a better indicator of Luxembourg’s future – 79% of 25-34 year-olds have earned the equivalent of a high-school degree, also close to the OECD average of 80%.

But graduation rates, while important, speak little to the quality of education received. The OECD’s Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2009, PISA focused on examining students’ reading ability, as research shows that reading skills are more reliable predictors of economic and social well-being than the number of years spent in school. The average student in Luxembourg scored 472 out of 600 in reading literacy, lower than the OECD average of 493.

Indicators

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Environment

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Key Findings

Outdoor air pollution is one important environmental issue that directly affects the quality of peoples’ lives. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.

PM10 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Luxembourg, PM10 levels are 12.6 micrograms per cubic meter, lower than the OECD average of 22 micrograms per cubic meter. In larger cities, the annual PM10 averages in Luxembourg City and Esch-Alzette have dropped from 30 micrograms per cubic meter in the 1990s to 25 micrograms per cubic meter in recent years.

Indicators

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Governance

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Key Findings

A cohesive society is one where citizens have a high degree of confidence in their governmental institutions and public administration. 73% of people in Luxembourg say they trust their political institutions, higher than the OECD average of 56% and one of the highest rates in the OECD area. High voter turnout is another measure of public trust in government and of citizens' participation in the political process. In the most recent elections for which data is available, voter turnout in Luxembourg was 57% of those registered. This figure is much lower than the OECD average of 72%.

Ensuring that government decision making is not compromised by conflicts of interest is key to maintaining trust in government. Transparency is therefore essential to hold government to account and to maintain confidence in public institutions.

Freedom of information laws (FOI) - also referred to as access to information laws - are one of these fundamental pillars of open government. Freedom of information laws (FOI) allows the possibility for individuals to access undisclosed information. For such policies to be successful, the public should have a clear understanding of their rights under the law, should be able to file requests with ease and should be protected against any possible retaliation. Luxembourg is currently drafting a law on access to information.

Indicators

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Health

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Key Findings

Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. Since 1960, life expectancy at birth in Luxembourg increased by more than 11 years. In 2008, life expectancy at birth in Luxembourg stood at 80.6 years, more than one year above the OECD average of 79 years.

Higher life expectancy is generally associated with higher healthcare spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors). Total health spending accounted for 7.2% of GDP in Luxembourg in 2006, lower than the OECD average of 9.0%. However, Luxembourg is well above the average in terms of total health spending per person, with current spending of 4210 USD in 2006, compared with an OECD average of 3060 USD in 2008.

Throughout the OECD, tobacco consumption and excessive weight gain remain two important risk factors for many chronic diseases.

The proportion of daily smokers among adults has shown a marked decline over the past twenty-five years in most OECD countries. Smoking rates among adults in Luxembourg in 2008 stood at 20%, lower than the OECD average of 23.3%.

In Luxembourg, the obesity rate among adults has increased from 15% in 1997 to 20% in 2007. Obesity’s growing prevalence foreshadows increases in the occurrence of health problems (such as diabetes, cardiovascular diseases and asthma), and higher health care costs in the future.

When asked, "How is your health in general?", 74% of people in Luxembourg reported to be in good health, higher than the OECD average of 69%. Despite the subjective nature of this question, the answers have been found to be a good predictor of people’s future health care use.

Indicators

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Life Satisfaction

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Key Findings

Happiness can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to compare the quality of life across countries.

For Luxembourg, like throughout much of the OECD, self-reported life satisfaction has been rising over the last decade. In recent polling, 66% were satisfied with their life and 68% believe that their life will be satisfying five years later.

74% of people in Luxembourg reported having more positive experiences in an average day (feelings of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry, sadness, boredom, etc). This figure is slightly higher than the OECD average of 72%.

 

 

Indicators

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Safety

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Key Findings

Personal security is a core element for the well-being of individuals, and largely reflects the risks of people being physically assaulted or falling victim to other types of crime. Across the OECD, victimisation rates for conventional crime (theft, robbery, assault) have declined in the new millennium. In Luxembourg, 4% of people reported falling victim to assault over the previous 12 months, close to the OECD average. 36% of people feel unsafe on the street after dark, however, higher than the OECD average of 26%.

The homicide rate (the number of murders per 100,000 inhabitants) is a more reliable measure of a country’s safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Luxembourg’s homicide rate is 1.5, lower than the OECD average.

Indicators

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Work-Life Balance

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Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. Some couples would like to have (more) children, but do not see how they could afford to stop working. Other parents are happy with the number of children in their family, but would like to work more. This is a challenge to governments because if parents cannot achieve their desired work/life balance, not only is their welfare lowered but so is development in the country.

In Luxembourg, 57% of mothers are employed after their children begin school; this figure is lower than the OECD average of 66% and suggests that mothers encounter difficulties when balancing family and career.

Another important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardize safety and increase stress. People in Luxembourg work 1601 hours a year, lower than the OECD average of 1739 hours.

The more people work, the less time they have to spend on other activities, such as time with others or leisure. The amount and quality of leisure time is important for people’s overall well-being, and can bring additional physical and mental health benefits. People in Luxembourg devote an estimated 65% of their day, or 15.6 hours, to personal care(eating, sleeping, etc.) and leisure (socializing with friends and family, hobbies, games, computer and television use, etc.) – close to the OECD average.

Data for time devoted to leisure and personal care in Luxembourg rely on OECD estimates. These figures will be updated as official information becomes available.

Indicators

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