Income and Wealth Inequality in France: Developments and Links over the Long Term

Abstract

[eng] This article sheds light on the long term development of income and wealth inequality and the link between them in France. Following a sharp decline in inequality that began at the beginning of the First World War, a trend towards inequality has emerged (and continues) since the mid 1980s. The historical perspective makes it possible to illustrate how small changes in inequality in savings, returns or earnings can have strong long term effects on wealth concen-tration. Two other major trends have been observed since the 1970s. One is the narrowing of the gap in labour income between men and women – although it remains high. The other is the increased difficulty, for those who only have access to labour income, to access the high¬est wealth brackets. Finally, our comparisons between France and the United States show that wealth and income inequalities were comparable or even lower in the United States before the 1970s. That country has since become much more unequal.