Poverty trends in Luxembourg 1985–2023: A ‘race’ between the middle and the bottom

In December 2025, the Luxembourg government adopted its first National Action Plan to prevent and combat poverty, demonstrating a renewed political commitment to addressing a challenge that has intensified over the past four decades. To inform this effort, this policy brief examines the evolution of poverty in Luxembourg between 1985 and 2023 using harmonized data from the Luxembourg Income Study. It documents disparities in poverty risk across different age groups, positions Luxembourg within the context of other high-income countries and highlights a key structural driver of rising measured poverty: the upward trend in poverty is fueled by increasing poverty thresholds in a ‘race’ between the bottom and the middle. By documenting long-term trends transparently, the brief provides an evidence base supporting informed policy decisions.