When the past determines the future: How teenage residential life leads to poverty as an adult

In Luxembourg, 4.1 per cent of adults aged 25 to 59 spent their teenage years without parental care - in residential care or as orphans. According to the latest STATEC analysis on the EU-SILC 2023 database, this part of the population is significantly more likely to experience poverty, housing insecurity and social exclusion. The gap persists even when other factors - education, employment, age - are taken into account.

Almost two out of five people who went through institutionalised fostering had not had their own home at some point in their lives - living with friends, in shelters, on the streets or in informal settings. This compares with only 6.6 per cent of those who grew up in a conventional family. And two-thirds of them continue to experience difficulties with housing even years later.

The financial situation is even more alarming: 67 per cent live in households struggling to 'make ends meet' and almost 65 per cent are below the poverty line - compared to 14.2 per cent among those who grew up with both parents. This is one of the starkest indicators of inequality, directly linked to the experience of adolescence.

Only 25.1 per cent of people who grew up without parents have a bachelor's degree or higher, compared to 51.3 per cent in the overall sample. Those who have lost one of their parents have higher, but still below average, chances of higher education. This limits opportunities in the labour market, especially in the context of high skill requirements and the high cost of living in Luxembourg.

People who spent their adolescence in boarding schools are much less likely to be able to count on help: 63 per cent do not know anyone who could help them financially, and 22.5 per cent do not even have moral support. In comparison, among those who grew up in a family, such people are 19.1 per cent and 9.2 per cent, respectively.

Leaving the care system often means an abrupt cliff edge: young people face adulthood without a 'social cushion'. This is particularly painful in Luxembourg, where housing costs are among the highest in Europe.

STATEC built a statistical model that takes into account age, education level, job availability and support to "weed out" the influence of these factors. The result: even after equalising conditions, the risk of poverty remains 24.1% higher for people who lived in a boarding school or orphanage at age 14 than for those who grew up with parents. For single-parent orphans, this effect is less pronounced (2.7%-3.9%) and sometimes statistically insignificant.

The study recognises its limitations: the data do not include measures of mental health, although childhood trauma and impaired emotional resilience may be a major cause of adult vulnerability. This emphasises how important not only the material but also the emotional environment of adolescence is.