Les travailleurs frontaliers lorrains

Les travailleurs frontaliers lorrains

Border Region
SaarLorLux Greater Region, Luxembourg
Language(s)
Français
Introduction

This article looks at cross-border workers living in Lorraine with a job in Luxembourg or Germany. It questions the role of cross-border working as a mode of job market regulation.

Summary

Cross-border working is a phenomenon that has concerned a growing number of people in Europe since the beginning of the 2000s. Lorraine, which constitutes a large labour pool and until the recent territorial reform was the only French region with borders with three countries, is concerned by large-scale flows into Luxembourg and to a lesser extent into Germany, and therefore represents a pertinent area to study to identify the geographical and economic dimensions of cross-border working. Cross-border working is analysed as a factor in regulating the job market through its heterogeneity, but also the legal standardisation of the status of the cross-border worker.

Content

In a context of expansion of the European Union and intensification of mobilities within the European area, this article examines the specific form of employment constituted by cross-border working, which concerns a growing number of people in the SaarLorLux Greater Region.

The first part of the article looks at the phenomenon of cross-border working and starts by presenting the geographical setting for the study: the cross-border area in the SaarLorLux Greater Region, which is seen as a laboratory for European integration within which several elements (such as geographical proximity, common languages, the history of industry and mining, etc.) favour the development of cross-border working. In 2005, the Greater Region accounted for 40% of the flows of cross-border workers in the fifteen member states of the EU at the time (OIE, 2005). Different issues around cross-border working are presented, in particular its forms (types of contracts, etc.) and its spatial dimensions (travel, residential mobility, etc.) in spite of the difficulties posed by the lack of harmonised data emphasised by the authors.

The second part of the article begins with an explanation of the evolution of the flows and the structuring of the phenomenon in the Greater Region. Then it addresses legal standardisation through the tax-related and social definitions of cross-border working. Because the cross-border worker, defined by the fact of being resident and working in different States, is a "hybrid circulating between two types of economy, two types of legislation and often two types of culture" (Kessler, 1991). The definition may be different depending on whether the cross-border worker is considered from the point of view of the social security or tax systems. From the social security point of view, the definition of the cross-border worker is provided by European Regulation No. 1408/71/EEC and its implementing Regulation No. 574/72/EEC, which date from the early 1970s and have been amended since (by Regulation No. 883/2004/EC which came into force on 1 May 2010). For the taxation aspects, it is bilateral tax agreements between countries that avoid double taxation of cross-border workers. But cross-border working also reveals the current limits of European coordination. There are some thorny points in the status of the cross-border worker: retirement age or recognition of invalidity vary considerably from country to country and cause problems for those who have had a mixed career (i.e. jobs in different countries).

Finally, the last part, which mainly consists of figures, describes the profiles of cross-border workers and stresses the wide variety of profiles within the same country of work, but especially according to the countries of work (geographical specialisation): the profiles in the Saarland are more industrial, those in Luxembourg more service-oriented.

Conclusions

Among the main conclusions of this study: cross-border working is presented as a factor regulating the regional job markets within the Greater Region. It does in fact offer possibilities for quantitative adjustment of the labour supply (Lorraine serving as a reservoir of workers for the bordering countries), but also on a qualitative level (Luxembourg and Saarland's needs for qualified workers being met by cross-border workers). These different processes are governed by specific rules: EU social security coordination Regulations and bilateral tax agreements. There are also practices, cultures and a history at play within this cross-border area marked by the steel and mining industries.

Cross-border working mainly concerns people who live close to the borders: nine out of the cross-border workers in Lorraine lived within 20 km of the border at the beginning of the 2000s, according to INSEE (geographical concentration). It is also characterised by geographical specialisation (cross-border workers' profiles in Saarland and Luxembourg are different).

On the other hand, although legal standardisation has allowed a status of the cross-border worker to be defined by clarifying the rules on social security and taxation, certain thorny points remain in this status. Limits concerning retirement and invalidity pose problems for those who have worked in several different countries. 

Key Messages

Cross-border working is a structural phenomenon anchored in the local economies. It allows a certain regulation of the cross-border job market within the Greater Region by making supply and demand of labour possible on the other side of the border. Nevertheless, its scale also reveals the limits of European coordination. National borders remain marked in the statistical data (definitions, data collection methods, etc.), but also in matters such as retirement age.

Author of the entry
Contributions

Université de Lorraine

Centre d’études de populations, de pauvreté et de politiques socio-économiques (CEPS/INSTEAD)CEPS/INSTEAD)

University of Luxembourg

Contact Person(s)
Date of creation
2019