France, Social PortraitEdition 2018

France, Social Portrait is for everyone who would like to learn more about French society.

This cross-cutting publication in the “Insee Références” collection throws the spotlight firstly on people aged 65 or over. Two reports then offer an in-depth analysis of the effects of social and fiscal reforms on household income and inequality. Lastly, around forty themed information sheets summarise the main data and provide European comparisons, to complete this social panorama.

Insee Références
Paru le : 20/11/2018

The benefit and tax reforms implemented in 2017 have virtually no impact on standard of living inequalities

Anne-Lise Biotteau, Simon Fredon, Félix Paquier, Kevin Schmitt

In comparison with the circumstances had they not been implemented, the new social and fiscal measures rolled out in 2017 slightly improve – by 0.4% on a full-year basis – the standard of living of the lowest-earning 10% of the population. The effect of these measures on the standard of living of the population as a whole is neutral. However, each measure has different effects depending on the position of households on the scale of standards of living and depending on family composition. The lowest-earning 10% of the population are advantaged by the implementation of the youth guarantee (garantie jeunes), in addition to the recent exceptional revaluation of the active solidarity income (revenu de solidarité active – RSA) and of certain family benefits, but are disadvantaged by the decrease in housing benefit. At the other end of the scale of standards of living, the highest-earning 20% of the population are mainly affected by the increase in pension contribution rates. This increase also disadvantages households with an intermediate standard of living, however, they benefit from a tax reduction of 20% on non-recurring income. Overall, the reforms undertaken in 2017 as a whole have virtually no impact on standard of living inequalities.

Insee Références

Paru le : 20/11/2018