The richest are increasingly rich, and the poorest increasingly poor. This is the bitter conclusion that INSEE draws in its latest study “standard of living and poverty”, relating to the revenues of the French in 2023, and published this Monday, July 7. This difference between the two ends of the income scale even reaches a record level: “The drop in most modest standard of livingconcomitant upwards that of the wealthiest, leads the indicators of inequality to reach levels among the highest for 30 years “points out the National Institute of Statistics.
Among these indicators of inequality, INSEE is particularly interested in the interdecile relationship, that is to say in the relationship between the standard of living of the most affluent 10%, and the level of living ceiling of the most modest 10% (see box). Concretely, if we divide the French population into ten sections (or deciles) according to their level of income, the first French people to enter the category of the easiest 10% won, in 2023, 3.49 times more than the best lotis among the poorest 10%. A level close to the 2011 record (3.58 times).
You have to be even richer to reach the richest 10%
More specifically, between 2022 and 2023, the ninth decile (D9) – the minimum standard of living of the richest 10% – increased 2.1% According to INSEE, while, over the same period, the first decile (D1) – the maximum standard of living of 10% the most modest – decreased by 1%. In other words, you have to be even richer to reach the richest 10%. In contrast, the standard of living of the poorest 10% has further fell.
More interestingly, to explain this growing distance, INSEE notably highlights the nature of the investments held by these two groups. In particular, with regard to the richest income gains: “The majority of this increase is due to the increase in financial income driven by the increase in interest rates and to the increase in investment income, in particular life investments and insurance”, Note INSEE.
An inequality of access to the most remunerative investments
There is indeed an inequality in access to investments, in particular the most remunerative. In its study on “Household wealth detention in 2024”, INSEE noted, for example, that if 71% of French people had a booklet A – there are around 57 million open – only 42% then had life insurance. Admittedly, the year 2023 was that of the increase in yields of regulated booklets (up to 3% for booklet A, and 6.1% for the popular savings book, LEP), but life insurance, if it also has a capital guaranteed part – the fund in euros – allows its holders to access other investments, which can be much more profitable.
For example, in the long term, it is the actions that display the best performance: 11.8% return on average per year, between 1984 and 2024, according to Institute of real estate and property savings (IEIF). However, according to the Autorité des Marchés Financiers (AMF), in 2023, approximately 1.3 million individuals only carried out at least one purchase or a sale of shares, ie … Only 1.9% of French people. A logical ratio, because to embark on these risky investments, you must first have put aside precautionary savings, on your booklet A, for example. A placement of which, for lack of sufficient savings, many savers must be satisfied.
What are the income of the first and ninth decile?
According to INSEE, in 2023, the first decile – the 10% of the most modest French people – made income below 13,460 euros per year. In contrast, the richest 10% earned more than 46,960 euros. The INSEE panel only covers mainland France, people living in accommodation, households who declare income (positive or zero) and whose reference person is not a student.
