Did you know?
| indicator | value | unit |
|---|---|---|
| Population | 0.6 | mil. |
| Visitors per year | 0.9 | mil. |
| Renewable energy | 3.2 | % |
How’s Life?
Luxembourg performs well across a number of well-being dimensions relative to other countries in the Better Life Index. Luxembourg outperforms the average in income, health, environmental quality, safety and life satisfaction. It underperforms average in education. These assessments are based on available selected data.
Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Luxembourg,the average household net-adjusted disposable income per capita is USD44 773 a year, more than the OECD average of USD30 490 a year.
In terms of employment,about 67% of people aged 15 to 64 in Luxembourg have a paid job, slightly above the OECD employment average of 66%. Some 70% of men are in paid work, compared with 64% of women.In Luxembourg, 3% of employees work very long hours in paid work, below the OECD average of 10%, with 3% of men working very long hours in paid work compared with 2% of women.
Good education and skills are important requisites for finding a job. In Luxembourg,74% of adults aged 25-64 have completed upper secondary education, lower than the OECD average of 79%. In terms of the quality of the education system,the average student scored 477 in reading literacy, maths and science in the OECD's Programme for International Student Assessment (PISA). This score is lower than the OECD average of 488. On average in Luxembourg,girls outperformed boys by 9 points, above the average OECD gap of 5 points.
In terms of health,life expectancy at birth in Luxembourg is around 83 years, two years higher than the OECD average of 81 years. Life expectancy for women is 85 years, compared with 80 for men.The level of atmospheric PM2.5– tiny air pollutant particles small enough to enter and cause damage to the lungs –is 10 micrograms per cubic meter, below the OECD average of 14 micrograms per cubic meter. In Luxembourg, 85% of people say they are satisfied with the quality of their water, slightly higher than the OECD average of 84%.
Concerning the public sphere, there is a strong sense of community and high levels of civic participation in Luxembourg, wheremost people believe that they know someone they could rely on in time of need, in line with the OECD average of 91%. Voter turnout,a measure of citizens' participation in the political process,was 90% during recent elections, higher than the OECD average of 69%, and reflecting the practice of compulsory voting in Luxembourg.
When asked to rate their general satisfaction with life on a scale from 0 to 10, Luxembourgish people gave ita 7.4 grade on average,higher than the OECD average of 6.7.
For more information on estimates and years of reference, seeFAQ sectionandBLI database.
Topics
OECD in Action
OECD Economic Surveys: Luxembourg
OECD’s periodic surveys of Luxembourg’s economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.
Find Out More
Luxembourg in Detail
Housing – Luxembourg expand
Key Findings
Living in satisfactory housing conditions is one of the most important aspects of people's lives. Housing is essential to meet basic needs, such as shelter, but it is not just a question of four walls and a roof. Housing should offer a place to sleep and rest where people feel safe and have privacy and personal space; somewhere they can raise a family. All of these elements help make a house a home. And of course there is the question whether people can afford adequate housing.
Housing costs take up a large share of the household budget and represent the largest single expenditure for many individuals and families, by the time you add up elements such as rent, gas, electricity, water, furniture or repairs. In Luxembourg, households on average spend nearly21% of their gross adjusted disposable income on keeping a roof over their heads, slightly more than the OECD average of 20%.
In addition to housing costs 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 children's development. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Luxembourg,the average home contains 2 rooms per person, more than the OECD average of 1.7 rooms per person. In terms of basic facilities,nearly every dwelling (99.9%) in Luxembourg contains private access to an indoor flushing toilet, more than the OECD average of 97%.
More Resources
Indicators
Income – Luxembourg expand
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, health care and housing.
Household net adjusted disposable income is the amount of money that a household earns each year after taxes and transfers. It represents the money available to a household for spending on goods or services. In Luxembourg,the average household net adjusted disposable income per capita is 44 773, considerably higher than the OECD average of USD 30 490.
Household net wealth is the total value of a household's financial and non-financial worth, such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles, valuables and other non-financial assets (e.g other consumer durables). In Luxembourg,the average household net wealth is estimated at USD941 162, higher than the OECD average of USD 323 960, and the highest figure in the OECD.
For more information on estimates and years of reference, seeFAQ sectionandBLI database.
More Resources
Indicators
Jobs – Luxembourg expand
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,about67% of the working-age population aged 15 to 64 has a paid job. This figure is slightly higher than the OECD employment average of 66%.
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 1.7%, higher than the OECD average of 1.3%.
The wages and other monetary benefits that come with employment are an important aspect of job quality.People in Luxembourg earnUSD65 854per year on average, much more than the OECD average of USD 49 165 and one of the highest rates in the OECD.
Another essential factor of employment quality is job security, in terms of expected loss of earnings when someone becomes unemployed. This includes how likely you are to lose your job, how long you are likely to remain unemployed and how much financial assistance you can expect from government. Workers facing a high risk of job loss are more vulnerable, especially in countries with smaller social safety nets. In Luxembourg,workers face an expected 2.2% loss of earnings if they become unemployed, much lower than the OECD average of 5.1%.
For more information on estimates and years of reference, seeFAQ sectionandBLI database.
Better Policies for Better Lives
Encouraging self-employment among young people
The public-private initiativeJonk Entrepreneuren Luxembourg(Young entrepreneurs in Luxembourg) promotes entrepreneurship and self-employment as an alternative to paid employment for young people. The non-profit organisation offers tailor-made and practice-orientated training for students, supported by the private sector and the main professional chambers in Luxembourg. The project reaches students through their formal education, and annual fairs and entrepreneurship events. For example, the annual fair in 2013 was attended by 400 students from 13 schools. The project has also been successful at raising the profile and awareness about youth entrepreneurship through extensive media coverage.
More Resources
Indicators
Community – Luxembourg expand
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. In Luxembourg,91%of people believe that they know someone they could rely on in a time of need, in line with the OECD average.
A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations.
More Resources
How's Life?: Measuring Well-being OECD Insights: Human Capital
Indicators
Education – Luxembourg expand
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. Having a good education greatly improves the likelihood of finding a job and earning enough money. People in Luxembourg can expect to go through15 years of educationbetween the ages of 5 and 39, much less than the OECD average of 18 years and one of the lowest levels in the OECD.
Graduating from upper secondary education has become increasingly important in all countries, as the skills needed in the labour market are becoming more knowledge-based. 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,74%of adults aged 25-64 have completed upper secondary education, lower than the OECD average of 79%.
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 2018, PISA focused on examining students' reading ability, skills in maths and level in sciences, as research shows that these 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 477 in reading literacy, maths and sciences, below the OECD average of 488. The best-performing school systems manage to provide high-quality education to all students.
More Resources
Indicators
Environment – Luxembourg expand
Key Findings
The quality of our local living environment has a direct impact on our health and well-being. Outdoor air pollution is one important environmental issue that directly affects the quality of people's lives. Despite national and international interventions and decreases in major pollutant emissions,the health impacts of urban air pollutioncontinue to worsen, with air pollution set to become the top environmental cause of premature mortality globally by 2050. 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.
PM2.5 – 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,PM2.5 levels are 10 micrograms per cubic meter, lower than the OECD average of 14 micrograms per cubic meter and in line with the annual guideline limit set by theWorld Health Organization.
Access to clean water is fundamental to human well-being. Despite significant progress in OECD countries in reducing water pollution, improvements in freshwater quality are not always easy to discern. In Luxembourg,85% of people say they are satisfied with water quality,slightly higher than the OECD average of 84%.
More Resources
How's Life?: Measuring Well-being OECD Environmental Outlook to 2050
Indicators
Governance – Luxembourg expand
Key Findings
Trust in government is essential for social cohesion and well-being. High voter turnout is a measure of citizens' participation in the political process. In the most recent elections for which data are available,voter turnout in Luxembourg was 90% of those registered. This figure is one of the highest in the OECD, where average turnout is 69%, and reflects the practice of compulsory voting in Luxembourg.
Broader public engagement in the decision-making process is also important for holding the government to account and maintaining confidence in public institutions. The formal process for public engagement in developing laws and regulations is one way to measure the extent to which people can become involved in government decisions on key issues that affect their lives. In Luxembourg, the level of stakeholder engagement in developing regulations is 1.7 (on a scale between 0 and 4); lower than the OECD average of 2.1.
For more information on estimates and years of reference, seeFAQ sectionandBLI database.
More Resources
How's Life?: Measuring Well-being Regulatory Policy Outlook: Luxembourg
Indicators
Health – Luxembourg expand
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.Lifeexpectancy at birth in Luxembourg now stands at almost 83 years, two years above the OECD average of 81 years. Higher life expectancy is generally associated with higher health care spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors).
When asked, "How is your health in general?"72%of people in Luxembourg reported to be in good health, higher than the OECD average of 68%. Caution is required in making cross-country comparisons as the assessment can be affected by factors as cultural background. Despite the subjective nature of this question, answers have been found to be a good predictor of people's future health care use. Gender, age and social status may affect answers to this question.
Better Policies for Better Lives
Monitoring standards in long-term care
The Luxembourg government sets minimum standards for structural and organisational quality for residential care providers.
The government has also set up a quality commission to regulate the provision of services under long-term care insurance, with qualification standards and guidelines for good practices. There are follow-up visits to evaluate if providers meet the framework. Compliance with the contractual agreement is checked at least one a year.
More Resources
Indicators
Life Satisfaction – Luxembourg expand
Key Findings
Happiness or subjective well-being 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 objective data to compare the quality of life across countries.
Life satisfaction measures how people evaluate their life as a whole rather than their current feelings. When asked to rate their general satisfaction with life on a scale from 0 to 10,people in Luxembourg on average gave ita 7.4 grade,higher than the OECD average of 6.7.
More Resources
Indicators
Safety – Luxembourg expand
Key Findings
Personal security is a core element for the well-being of individuals. Do you feel safe out walking, alone at night, for example?In Luxembourg, about 87% of people say that they feel safe walking alone at night,more than the OECD average of 74%.
The homicide rate (the number of murders per 100000 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 0.2, one of the lowest rates in the OECD, where the average is 2.6.
More Resources
Indicators
Work-Life Balance – Luxembourg expand
Key Findings
Finding a suitable balance between work and life is a challenge for all workers, especially working parents. The ability to successfully combine work, family commitments and personal life is important for the well-being of all members in a household. Governments can help to address the issue by encouraging supportive and flexible working practices, making it easier for parents to strike a better balance between work and home life.
An 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, jeopardise safety and increase stress. In Luxembourg,about 3%of employees work very long hours in paid work, much less than the OECD average of 10%.
The more people work, the less time they have to spend on other activities, such as time with others, leisure activities, eating or sleeping. The amount and quality of leisure time is important for people's overall well-being, and can bring additional physical and mental health benefits.In Luxembourg, full-time workersdevote a smilar amount of their day on average to personal care(eating, sleeping, etc.)and leisure(socialising with friends and family, hobbies, games, computer and television use, etc.) to the OECD average of 15 hours.
More Resources
