  In spite of being one of the smallest and wealthiest countries in the
European Union in terms of GDP per capita, Luxembourg is facing socio-economic
challenges due to recent rapid urban transformations. This article contributes
by approaching this phenomenon at the most granular and rarely analysed
geographical level - the neighbourhoods of the capital, Luxembourg City. Based
on collected empirical data covering various socio-demographic dimensions for
2020-2021, an ascending hierarchical classification on principal components is
set out to establish neighbourhoods' socio-spatial patterns. In addition, Chi2
tests are carried out to examine residents' socio-demographic characteristics
and determine income inequalities in neighbourhoods. The results reveal a clear
socio-spatial divide along a north-west south-east axis. Moreover, classical
factors such as gender or citizenship differences are revealed to be poorly
determinant of income inequalities compared with the proportion of social
benefits recipients and single residents.
