Aging and Inequality: The Growing Divide

Aging and Inequality: The Growing Divide

2024-09-13 14:30:07

Employees under 30 earn on average around 1,800 euros net per month for a full-time job, according to INSEE (2019 data for the private sector). But the gaps are large depending on the profession. Senior executives under 30 can count on an average salary of 2,700 euros net per month, compared to 1,600 euros for workers and employees of the same age, a gap of 1,100 euros. And again, these are averages. Many young people with few qualifications only earn the minimum wage, or around 1,200 euros per month (when they work full-time).

Over the course of their working life, the salaries of workers and employees increase much less than those of managers. As a result, the gap widens with age. While managers aged 60 and over earn around 5,700 euros net on average, the salary of workers and employees of this age is around 1,900 euros. The result is a salary gap of around 3,800 euros per month or, in other words, older managers earn three times more than workers and employees of the same age.

From the start of working life, lifestyles differ according to social backgrounds because of these salary gaps. But the living conditions of older people are even more unequal, which is rarely mentioned. The levels of remuneration of senior executives allow them in particular to save throughout their professional careers and to pass on their assets to their children, one of the elements that reproduce inequalities from one generation to the next. Their higher salaries than other categories also allow them more often to become homeowners and, as a result, not to have to finance housing when they retire, which further increases the gaps in living standards at an advanced age. This situation explains the feeling of injustice and the demands expressed by retirees with low pension levels from low-skilled professions: their living conditions are nothing like those of former executives.

Be careful though: this data is a snapshot of salaries on the job market at a given time. Some young employees and workers will be able to access an intermediate or even managerial position during their career, even if this social advancement is rare, particularly in France. Overall, the prospect of seeing one’s standard of living improve mainly concerns the most highly qualified young people who start and end their careers as senior managers.

Full-time equivalent employees in the private sector.
Lecture : Private sector employees under 30 earn an average of 1,558 euros net for a full-time position, compared to 2,689 euros for senior executives of the same age.

Source : Insee – 2019 Data – © Inequality Observatory

Data Chart

Average net monthly salaries by age
according to socio-professional category
Senior executives Intermediate professions Ouvriers Employees Ensemble Managers/employees gap
Under 30 2 689 1 979 1 639 1 558 1 801 1 131
From 30 to 39 years old 3 608 2 318 1 827 1 758 2 299 1 850
From 40 to 49 years old 4 504 2 518 1 896 1 822 2 635 2 682
From 50 to 59 years old 4 992 2 651 1 917 1 838 2 750 3 154
60 years and over 5 716 2 917 1 932 1 934 3 157 3 782
Ensemble 4 230 2 411 1 830 1 740 2 424 2 490

Full-time equivalent employees in the private sector.
Lecture : Private sector employees under 30 earn an average of 1,558 euros net for a full-time position, compared to 2,689 euros for senior executives of the same age.
Source : Insee – 2019 Data – © Inequality Observatory

Photo / CC Ruthson Zimmerman

Support the Inequality Observatory

The Observatory of Inequalities is an independent organization. To publish quality information and disseminate it as widely as possible, we absolutely need your support. It is thanks to you that we put all our articles online for free.

Against inequality, information is a weapon.

I make a donation

1726450633
#Inequalities #social #categories #widen #age

What are‍ the ​main factors contributing to ⁤the growing salary gap between senior executives‌ and workers in France?

The Salary Gap Between Senior Executives and Workers in France: A Growing Inequality

The salary gap between senior executives and workers in France is a ‌stark reminder of the country’s growing income inequality. According to data​ from the National Institute⁣ for ⁤Statistics and Economic Studies (INSEE)⁣ in‌ 2019, employees under ​the age of ⁤30 earn an ​average of around 1,800 euros net‌ per month⁢ for a ⁣full-time ‌job in ⁤the private⁢ sector. However, senior executives‍ under⁢ 30 can expect to earn significantly more, with an average ‌salary of 2,700 euros net per ‌month, a difference ‌of 1,100 euros.

This salary gap only widens as age increases. ⁢Workers and employees experience⁢ a much slower salary growth over the course of their working life compared to managers. As a result, the gap between ​the two groups grows‌ even more ⁣pronounced with age.​ For example, managers aged 60 and over‌ earn an average ‌of⁤ 5,700 euros net per‌ month, while workers and employees ‍of the same age earn around 1,900 ​euros, a difference of 3,800 euros.

The impact ‍of these salary differences on lifestyles is significant.‍ From the start of their working lives, individuals from different social backgrounds have vastly different⁤ living standards due to these salary gaps. However, the living conditions of older people are even more unequal, with senior executives ‍able​ to ‌save and pass on their assets ‌to their children, perpetuating inequality⁤ from ‍one generation ‍to the ​next. This ​situation has led to​ feelings⁣ of injustice and demands from retirees with low pension‍ levels, who feel that their ⁤living standards are ⁤far inferior to ‍those of ⁤former executives.

It ⁤is‌ essential to note that this data provides a​ snapshot of salaries on the job‌ market at a given time. Some young employees⁢ and ⁣workers‌ may be able ‍to access intermediate or ⁢managerial positions during their careers, albeit rare, particularly in France. However, the prospect of seeing one’s standard of living improve mainly concerns‌ the most highly qualified young people who start and end their careers as senior managers.

The ⁤table below highlights the‌ average net monthly ⁤salaries ​by age according to socio-professional category:

| Age⁤ | ​Senior Executives | Intermediate Professions | Workers | Employees | All | Managers/Employees​ Gap |

| — ‌| — | ​— | ⁤— | — | — ‍| —⁢ |

| Under‍ 30 ‌| 2,689 |‌ 1,979 | 1,639 | 1,558 | 1,801 | 1,131 ⁢|

| 30-39 ​| 3,608 | 2,318 | 1,827 | 1,758 | 2,299 | 1,850 |

| 40-49 | 4,

How does the salary gap between professions influence the lifestyle choices of younger and older generations?

The Salary Gap: How Income Inequality Affects Lifestyles Across Generations

The salary gap between different professions has a profound impact on lifestyles, particularly among younger and older generations. According to data from INSEE (2019), employees under 30 years old earn an average net salary of around 1,800 euros per month for a full-time job. However, significant disparities exist depending on the profession. Senior executives under 30 can expect an average salary of 2,700 euros net per month, while workers and employees of the same age earn around 1,600 euros, a gap of 1,100 euros.

Salary Gaps Widen with Age

As individuals progress through their working lives, the salaries of workers and employees increase at a slower rate compared to managers. Consequently, the gap between the two widens with age. For instance, managers aged 60 and over earn an average net salary of around 5,700 euros, while workers and employees of the same age earn approximately 1,900 euros, resulting in a gap of around 3,800 euros per month.

Lifestyle Disparities from the Start

These salary gaps have a significant impact on lifestyles, starting from the beginning of one’s working life. The higher salaries of senior executives enable them to save throughout their careers, pass on assets to their children, and become homeowners, which in turn affects their living standards in old age. In contrast, workers and employees from low-skilled professions often struggle to make ends meet, leading to feelings of injustice and demands for better pension levels in retirement.

Social Advancement: A Rarity

It’s essential to note that this data represents a snapshot of salaries on the job market at a given time. While some young employees and workers may climb the career ladder to intermediate or managerial positions, social advancement is rare, particularly in France. Generally, the prospect of improving one’s standard of living mainly concerns highly qualified young people who start and end their careers as senior managers.

The Data Behind the Gap

The table below illustrates the average net monthly salaries by age according to socio-professional category:

| Age | Senior Executives | Intermediate Professions | Workers | Employees | Overall | Managers/Employees Gap |

| — | — | — | — | — | — | — |

| Under 30 | 2,689 | 1,979 | 1,639 | 1,558 | 1,801 | 1,131 |

| 30-39 | 3,608 | 2,318 | 1,827 | 1,758 | 2,299 | 1,850 |

| 40-49 | 4,504 | 2,518 | 1,896 | 1,822 | 2,635 | 2,682 |

| 50-59 | 4,992 | 2,651 | 1,917 | 1,838 | 2,750 | 3,154 |

| 60 and over | 5,716 | 2,917 | 1,932 | 1,934 | 3,157 | 3,782 |

These statistics highlight the significant salary gaps between different professions, which have a profound impact on lifestyles, social mobility, and inequality.

Leave a Replay