Household Income and Wealth 2024 Edition
With Household Income and Wealth, INSEE presents the main indicators and analyses of inequality, poverty and household wealth.
A third of people with very low incomes in 2003 remained in this situation nearly 20 years later
Mathias André, Tristan Loisel, Michaël Sicsic (Insee)
In 2021, 53 million people reported their income to the tax authorities and 69 million people reported their income at least one year between 2003 and 2021. Among them, 23 million belonged to the bottom 10% of income before redistribution for at least one year.
According to new individualised exhaustive fiscal data, between 2003 and 2021, the bottom 10% of income before redistribution were on average younger and less likely to live as couple than the rest of the population. These people with very low income were more often self-employed and less frequently retired. Among them, in 2021, 46% had no income before redistribution, and 2% had a negative income.
Among the bottom 10% in 2003, one third were still in this situation in 2021. Over shorter periods, persistence in the bottom 10% was higher: 63% of people in the bottom 10% in a given year remained in this group three years later. The income mobility from very low income to higher income was very low: only 3% reached the top 30% three years later, and 8% 18 years later.
Several family or professional events can explain entering or exiting the bottom 10%. Separation and periods of unemployment increase the risk of entering this group while unions and the transition to retirement tend to favour exiting it. Entering the workforce is a factor that can lead to entering the bottom 10% but it can also lead to lowering persistence in it.