By the evening edition.
The National Institute of Statistics and Economic Studies (Insee) has published a report on the income and living standards of the French. A way to situate oneself in society.
INSEE, the National Institute of Statistics and Economic Studies, published, on October 17, 2024, a copious report on household income and assets in France. A summary of figures and analyses, which highlights the increase in inequalities in living standards since the 1990s, particularly with regard to real estate assets.
In this report, the organization uses the notion of gross disposable income a lot. Not to be confused with salary. This is all income available for consumption or saving, that is to say: salaries and other income + social benefits – contributions and taxes. To calculate the standard of living, we must then take into account the composition of households. For example, a couple who had €3,000 of disposable income per month would not have the same standard of living depending on whether they had no children or whether they had three. As for purchasing power, it evaluates what a household is able to consume, taking into account prices.
INSEE notes that wages have been pushed upwards recently, with “the revaluation of the minimum wage (+5.4% on average over the year 2023) and that of the civil service index point (+2.4%)”. However, this did not really affect purchasing power. “The purchasing power of gross disposable income of households will only increase by 0.8% in 2023, in line with the sharp resumption of inflation. »
According to figures for 2022 (the most recent consolidated), the median disposable income for a single person stands at €2,028 per month. This means that half of the population has less money to live on. Here are the raw numbers. Now it remains to locate them.
Where does poverty start?
Several limits are put forward. “The poverty line is usually defined at 60% of the median standard of living”asks INSEE. Methodology validated by the Observatory of Inequalities, which has put online a calculator to position yourself on the salary scale. For 2022, this therefore represents €1,216 for a single person.
But this method of calculation is contested. The economist Pierre Concialdi, for example, believes that it is far too low. “The poverty line is purely conventional, he regretted, when we interviewed him in 2023. We can talk about a threshold of social exclusion: we have a great risk of being excluded if we find ourselves below it. » He prefers to refer to the reference budgets of the National Observatory of Poverty and Social Exclusion (Onpes). “On average, the decent living threshold is around 84% of the median standard of living”indicated these budgets in 2023. This therefore represents around €1,700 for a single person per month and a little less than €3,600 for a couple with two children.
When are we rich?
The threshold of wealth, too, is subjective and subject to debate. For the Observatory of Inequalities, the floor can be set at double the median standard of living: €4,056 per month after taxes for a single person. This amount rises to more than €10,000 for a couple with two children over 14 years old.
Read also: The ultra-rich are getting richer, here's why
How to define the middle class?
There, it's even more vague. “The notion of middle class, although commonly used, is not subject to a precise definition”we learn from the website of the Ministry of the Economy. It could therefore bring together all French people who are neither poor nor rich. Bercy estimates that this category includes two out of three French people, with state services often taking as a reference the poverty threshold set at 60% of the median standard of living. In a note from the Montaigne Institute dated January 2024, the think-tank considered that this designation was suitable for incomes between €1,440 and €3,100 per month.
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