Income inequalities between the overseas departments (DOM) and Metropolitan France

Christophe Michel, Maël Theulière, division Conditions de vie des ménages et Nathalie Missègue, division Revenus et patrimoine des ménages, Insee

The median income per unit of household consumption in overseas departments was 38% lower than the income of households in Metropolitan France in 2006. But this gap has partly narrowed compared to a decade ago. Income disparities per unit of consumption are also higher there than in Metropolitan France. Thus in the overseas departments (DOM), the 20% wealthiest households have a minimum income per unit of consumption which is 3.2 times above the household income ceiling for the 20% with the most modest income. This ratio is 2.2 in Metropolitan France but 4.1 in French Guiana. These differences with Metropolitan France are partly explained by differences in demographic structures, less skilled employment and a lower rate of employment in the overseas territories. But the differences are also related to the specific features of the overseas departments: lower pensions and capital income, a larger proportion of small and medium-sized enterprises, and labour market specifics.

Insee Première N° 1279
No 1279
Paru le : 05/02/2010