The variety of wealthy folks has decreased in ten years in France | EUROtoday

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QWho is wealthy in France? The Observatory of Inequalities delivers its response within the third version of its report on the wealthy, printed on June 5. Thus, single folks incomes a minimum of 3,860 euros per thirty days, after taxes, are thought of “rich”. Among {couples}, the earnings stage should exceed 5,790 euros. As for households with two youngsters over 14 years outdated, the Observatory units the wealth threshold at 9,650 euros per thirty days, nonetheless after taxes.

If we needed to paint a composite portrait of the wealthy Frenchman, he can be a person. “There are twice as many men as women among the 10% of highest paid employees,” notes the Observatory of Inequalities. This man would train the perform of govt, each within the personal sector and within the public sector: 25.5% of executives are wealthy, in comparison with 1% of staff! This wealthy French particular person would even be between 60 and 64 years outdated (15% of households whose reference particular person falls into this age group is wealthy, in comparison with 1% for these underneath 30).

Fewer wealthy folks, however richer wealthy folks

In complete, says the report, round 4.7 million individuals are wealthy in France, or 7.4% of the inhabitants based mostly on 2021 knowledge from INSEE. The Observatory of Inequalities, nonetheless, observes a drop within the variety of wealthy folks within the nation. There have been 5.5 million in 2011, or 800,000 greater than right now.

However, though the variety of wealthy folks has decreased, they’re a little bit richer than earlier than. Half of them have a lifestyle larger than 1.28 instances the wealth threshold set by the Observatory, in comparison with 1.26 instances in 2011. Unsurprisingly, the rise in earnings of the wealthiest is pushed by the highest of the earnings pyramid. “The richest 1% captured 7.7% of all pre-tax income in the early 1980s,” the report mentioned. This share reaches 12.7% in 2022, based on the World Inequality Database.

A wealth threshold that’s debated

You have to hold on a bit to grasp how the Observatory of Inequalities managed to set its wealth threshold. In element, the affiliation determined to attract inspiration from the calculation of the poverty threshold. For the report, it corresponds to 60% of the median earnings, based on INSEE, or 50%, based on the OECD. This median earnings (half of French folks earn much less, the opposite extra) right now stands at 1,930 euros per thirty days, after taxes and social advantages, for a single particular person.

Let's return to the wealth threshold. The Observatory of Inequalities has chosen to contemplate as “rich” individuals who earn 200% of the median earnings, or twice 1,930 euros. This is how they land on the three,860 euros per thirty days for a single particular person.

As sociologist Julien Damon writes in a column in Point, this can be a “conventional choice”. And it’s debated. Particularly as a result of it might be criticized for being arbitrary. INSEE refuses, as such, to concoct its personal wealth threshold. A bit political and, above all, monstrously complicated. Take the case of farmers. They earned on common 1,860 euros per thirty days in 2021, or half lower than the wealth threshold set by the Observatory of Inequalities. Except that farmers who personal their land or personal an agricultural constructing even have vital property.

Aware of this statistical bias, the Observatory of Inequalities additionally seems at heritage. It locations within the “rich” class the 5 million French folks (16.9% of the inhabitants) whose property exceed 531,000 euros, or thrice the nationwide median. The wealthy are additionally distinguished by their extra widespread use of non-public companies (housekeeping employees, gardener, and so forth.). Thus, 40% of the highest 10% of rich households use these companies, in comparison with solely 6% among the many poorest 10%.