Income poverty and deprivation in France: a dynamic analysis

Transcription

1 3th October Income poverty and deprivation in France: a dynamic analysis Published in Les revenus et le patrimoine des ménages, edition Pascal Godefroy, Nathalie Missègue INSEE

2 First: poverty as a lack of ressources Equivalised household Relative disposable income < ( ) EU definition: income poverty line Relative income poverty line = 60% of the median (after social transfers) Ex., 2008, in France: 949 each month, per individual 2

3 Secondly: poverty in terms of deprivation Individuals for whom living conditions are affected by a lack of ressources French definition : Deprivation > = at least 8 out of 27 items French deprivation index covers 4 everyday life areas: - Economic strain - Arrears - Consumption restriction - Housing (bad housing conditions) 3

4 Secondly: poverty in terms of deprivation French definition differs from EU definition EU definition: «severely materially deprived persons» i.e persons who cannot afford at least 4 out of 9 items French definition: a larger scope of items (27 / 9) more emphasis an economic strain and consumption restrictions; in addition: bad housing conditions; 4 durable good deprivation: not included

5 Current poverty rates vs longitudinal rates In 2008, for example: - monetary poverty OR deprivation: 20% of the population - monetary poverty AND deprivation: only 5% complementarity of the two poverty measures longitudinal analysis to draw poverty profiles over time 5

6 Over a five-year period: 36 % experienced at least one poverty spell 13 % Poverty spell = income poverty OR deprivation 64 % (persistent non-poor) 11 % 12 % Income poverty Deprivation Both of them No poverty spell Period : 2004 à 2008 (years of income - SILC) 1 in 3 poor individuals affected by income poverty AND deprivation 6

7 Over a five-year period: 1 in 4 poor person is a «persistent poor» PERSISTENT POVERTY 4 or 5 year spells 27 % 41 % TRANSIENT POVERTY 1 year spell or 2 (separated by at least one of non-poverty spell) RECURRENT POVERTY 2 or 3 consecutive year spells or 3 spells (some separated by one or two of non-poverty spells) 32 % Period : 2004 à 2008 (years of income - SILC) 7

8 Those in persistent poverty: more likely 1) to cumulate forms of poverty Transient poverty: 15 % experienced income poverty and deprivation at one point - ex.: 2 years (separated by at least one of non-poverty) of deprivation and 1 year of income poverty Persistent poverty: * 60 % experienced both of them at one point - ex.: 5 years of income poverty and 3 years of deprivation * 18 % experienced both of them for 4 or 5 years 8

9 Those in persistent poverty: more likely 2) to experience deeper poverty - Number of deprivation higher Persistent poverty: an average of 11 deprivation items (2004 to 2008) Transient poverty: an average of 5 deprivation items - Income poverty more important 9

10 Factors that increase probabilities to be poor Characteristics found to be associated with higher probability to face one s poverty form: transient / recurrent / persistent - Low education degree - Life event: divorce [persistent poverty] - Life event: to move in with somebody [transient poverty] 10

11 Factors that decrease probabilities to be poor Characteristics found to be associated with lower probability to face one s poverty form: transient / recurrent / persistent - Life event: to move in with somebody [persistent poverty] - Home-ownership - Liquid assets 11