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Changing Inequalities and Societal Impacts in Rich CountriesThirty Countries' Experiences$
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Brian Nolan, Wiemer Salverda, Daniele Checchi, Ive Marx, Abigail McKnight, István György Tóth, and Herman G. van de Werfhorst

Print publication date: 2014

Print ISBN-13: 9780199687428

Published to Oxford Scholarship Online: April 2014

DOI: 10.1093/acprof:oso/9780199687428.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 24 November 2020



Has Inequality Grown Enough to Matter?*

(p.437) Chapter 19 Luxembourg
Changing Inequalities and Societal Impacts in Rich Countries

Alessio Fusco

Philippe Van Kerm

Aigul Alieva

Luna Bellani

Fanny Etienne-Robert

Anne-Catherine Guio

Iryna Kyzyma

Kristell Leduc

Philippe Liégeois

Maria Noel Pi Alperin

Anne Reinstadler

Eva Sierminska

Denisa Sologon

Patrick Thill

Marie Valentova

Bogdan Voicu

Oxford University Press

Luxembourg experienced remarkable economic performance and employment growth since the middle of the 1980s. Based on the development of the financial sector, this growth benefited massively from the contribution of immigrants and cross-border workers to the labour force. High economic growth led to a rapid improvement in the overall living standard of the resident population. During the same period, income inequality increased too, albeit modestly. Even if the country can still be considered a low inequality country by international standards, this trend is a potential source of concern. This chapter analyses the factors that explain the rise in income inequality between 1985 and 2010 and provides a descriptive account of whether this trend has been correlated with a set of social, cultural, and political outcomes. By and large, the positive impact of the improvement of overall living standards seems to have prevailed over the potential detrimental effects of increasing inequality.

Keywords:   income inequality, immigrants, living standards, Luxembourg, social impacts, health, poverty, political participation, redistribution, financial sector

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