The Policy Lab presents new comparative evidence on how alimony payments impact the risk of poverty following household separation. Using Luxembourg Income Study (LIS) data from Austria, Belgium, Denmark, Finland, Sweden, and Luxembourg, the study compares household poverty rates including and excluding alimony transfers. Receiving alimony reduces the risk of poverty by up to 10 percentage points, particularly in lone-parent households. Conversely, paying alimony can increase poverty risk for some households, notably single adults. Effects differ across countries and household types, reflecting cross-national variation in income redistribution through alimony. Overall, the findings underline the relevance of alimony arrangements for preventing poverty after separation.
Cross-border workers earn about 40% more than they would have at home, but face costs on return, which are highest for the less skilled and those returning after long spells in Luxembourg.
