By Organisation for Economic Co-Operation and Development
Publication through service provider for fiscal Co-Operation and improvement
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Additional info for Oecd Economic Surveys: Luxembourg 2003-Issue 15 (Oecd Economic Surveys)
Example text
In addition, continued immigration on the scale of the recent past would boost the resident population to 60 per cent above its 2000 level by 2050 in the baseline scenario. These two movements are acting as a powerful offset to the ageing of the domestic population in that period. A slow down in either the inflow of crossborder workers or net immigration would bring forward stresses in the system that, under current trends, would not otherwise become evident until the second half of the century.
Nevertheless, it is important to identify potential weaknesses in the approach and to correct them, should the reform fail to bring down the inflows into disability pension significantly. First of all the medical decision that opens the door to the disability pension or keeps it closed (stage two) needs to be monitored very closely. The medical criteria of assessing general inability to work have not been changed for the time being. 46 The higher it is, the higher the fiscal cost of © OECD 2003 Policies to strengthen growth in national income Box 2.
OECD 2003 III. Policies to strengthen growth in national income Luxembourg residents have benefited from high economic growth based on the intensive use of inputs of foreign capital and labour, which has generated tax receipts that have helped to finance very generous social benefits and an expansion in well-paid public sector jobs (see Chapter IV). e. resident) labour market in the event of adverse economic shocks, helping to keep structural unemployment low despite labour-market institutions that in other OECD countries have contributed to large increases in structural unemployment.