Inequalities in Returns to Wealth and Wealth in France, 2017

Heterogeneity in returns to wealth and their positive correlation with net worth are crucial elements for explaining the formation of wealth inequalities. After reviewing the empirical literature on this topic, this paper presents estimates of wealth and returns to wealth using an original database combining the French 2017 wealth survey, administrative income and wealth tax records, company balance sheets, and national accounts.

The study of the joint distribution of returns to wealth and net wealth, for the year under review, highlights a significant increase in the returns to net wealth according to its level, in particular at the top of the distribution. The returns to net wealth increases by 3.3 percentage points between the second and top decile of net wealth. The increase in returns is more remarkable for the top percentiles. These preliminary results, though specific to this particular year and adjustment method, do contribute to the debate over wealth inequality in France.