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Indexing wages according to income, a false good idea

08.01.2026 - Delano

In the press

Is it a good idea to link wage indexation to income? Answers with Vincent Hein, director of the Idea Foundation, and William Telkes, chief economist at Spuerkeess. 

A cornerstone of Luxembourg’s social model, automatic indexation aims to preserve purchasing power in the face of inflation. Universal in principle, it nevertheless raises a central question: does it really protect all households in the same way?

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