The Observatory of Inequalities has calculated a new poverty threshold. Conversely, beyond a certain amount received each month, households are considered rich or belonging to the middle class.
Who is rich? Who is poor? Who is part of the middle class? This question often comes up in the public debate already fueled by issues linked to purchasing power and inequalities. While it is easy to ask this question, it is much more difficult to answer it.
Many institutes, think tanks and associations focus on the subject every year, each giving a different take. Nevertheless, there seems to be a consensus among economists on an analysis methodology. It consists of taking into account two essential elements.
The first is the composition of the household. In fact, living alone or with 4 children necessarily generates very different expenses. The second element is the notion of disposable income. The latter is not limited only to salaries or retirement pensions received each month. Disposable income includes all the resources available to a household to consume or save, namely potential rental income or possible social benefits and other allowances. All this, after deduction of social security contributions, taxes and duties.
According to INSEE, the median disposable income in France stands at 2,146 euros net per month for a single person. Clearly, 50% of households have an income greater than this amount, while the other half live on less. According to the latest report published by the Observatory of Inequalities, a person is considered rich when their income is greater than double the median disposable income, that is to say greater than 4,292 euros net monthly.
Conversely, a person lives below the poverty line when their income is less than 60% of the median disposable income. Concretely, a person is considered poor when their disposable income is less than 1,073 euros net per month. Still according to figures from the Observatory of Inequalities, a person whose disposable income is between 1,683 and 3,119 euros per month belongs to the middle class. Above 3,119 euros, it is the category of wealthy households, which brings together 20% of the French population. Below 1,683 euros, this concerns the working class, i.e. people whose income is among the lowest 30%.
All the amounts mentioned above are valid for a single person. However, it is possible to re-evaluate them depending on the composition of the household. Still according to the Observatory of Inequalities, a childless couple is considered poor if their disposable income does not exceed 1,610 euros per month. If this income is between 2,525 and 4,679 euros, then the couple is part of the middle class. The couple will be considered rich if their income exceeds 6,438 euros per month.
For a couple with two children, the thresholds climb further. A household is considered poor if its disposable income does not exceed 2,683 euros net per month. This couple is part of the middle class if their income is between 4,208 and 7,798 euros per month. Finally, a family with two children is considered rich if its disposable income exceeds 10,730 euros per month.
