The United States and France: Two very different versions of inequality

In the United States, rising inequality results from high incomes and the growing number of working poor due to the skewing of income distribution to the detriment of wage earners , especially those on low incomes . On the other hand, the unemployment rate remains low and the employment rate and the participation rate ( calculated in a similar manner to France’s ) remain high. The situation regarding inequality is quite different in France. Rising inequality ( befor e redistributive policies ) in France does not result from high incomes and results much less from the working poor than in the United States. Further , i ncome distribution is skewed in favour of wage earners . France’s rising inequality ( before redistribution) can be attributed to its high level of structural unemployment and low employment rate, i.e. to labour market exclusion. C ommentators should therefore be careful to not confuse France’s inequality with that in the United States.