A recent study by the Luxembourg Central Bank reveals that cross-border workers in Luxembourg face significant disparities in income and wealth compared to residents, with French workers earning the least and Belgians the most among their ranks.

A study released this week by the Luxembourg Central Bank (BCL) offers new insights into the finances of cross-border workers. Published on Monday, the study analyses the wealth of cross-border workers in Luxembourg, based on data collected in 2021 from 2,000 households in the Greater Region employed in the Grand Duchy.

The BCL found that cross-border workers predominantly reside in their countries 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 possess a higher level of education. 60% of cross-border workers have at least three years of higher education, compared to 50% of residents.

The study highlights that cross-border workers are predominantly employed in the private sector, occupying roles in commerce, transport, accommodation, industry, as well as financial and insurance activities. Conversely, only a small proportion, around 10%, are employed in the public sector.

French cross-border workers earn the least

The BCL study also estimated the median gross income of cross-border workers, revealing significant disparities. French cross-border workers had the lowest median income, earning €60,800 in 2021. This figure indicates that half of French cross-border workers earned less than this amount, while the other half earned more. In comparison, Belgian cross-border workers had a median income of €79,400, and German cross-border workers earned €79,500.

Cross-border workers generally possess 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, though this varies significantly by country of origin.

Belgian cross-border workers had the highest average wealth at €345,000, followed by Germans at €327,000, and French at €250,000. In contrast, Luxembourg residents had an average wealth of €561,000.

Despite having less wealth overall, cross-border workers fare better financially than their neighbours who do not work in Luxembourg. Their incomes are higher, and they are more likely to be homeowners. Among cross-border workers, 76% of Belgians own property, compared to 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 borrowing capacity for purchases.

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