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Report by the National Observatory on Poverty and Social Exclusion Report by the National Observatory on Poverty and Social Exclusion 1 In accordance with the Law of 11 March 1957 (article 41) and the Code of Intellectual Property of 1 July 1992, completed by the Law of 3 January 1995, all partial or complete reproduction or collective use of present publication is strictly forbidden without the express authorisation of the publisher. In this respect, you are reminded that the abusive and collective use of photocopies endangers the economic balance of book circuits. © La Documentation française, Paris, 2006 2 Contents INTRODUCTION 6 CHAPTER 1 INDICATORS AND EVOLUTION OF POVERTY 9 Since 2003, an increase in the number of social minima recipients and a concentration of poverty situations noted by associations 11 Unemployment rose through mid-2005 in an unfavourable economic climate, then began to fall 11 A significant increase in the number of individuals receiving minimum social benefits since 2004 11 Data from associations confirm the concentration of poverty in recent years 15 The downward trend in monetary poverty levelled out in 2003 after slowing down for several years 16 The rise in the rate of monetary poverty in 2003 reflects a change in the long-term downward trend in poverty 16 Situations differ according to age, gender and type of household 19 Poverty measured by living conditions continues to drop over the recent period 24 France occupies an intermediary position in Europe in terms of monetary poverty 26 A rate of monetary poverty close to the European average 26 The major role of social transfers and benefit schemes 27 The Observatory’s proposals for a better analysis of the evolution in poverty 28 Poverty indicators : essential tools, though their drawbacks must be kept in mind 29 The Observatory’s choice : expand the diagnostic process through the use of “pivotal” indicators of poverty and exclusion 31 Observatory recommendations : Improve existing indicators, develop new measurement tools 36 CHAPTER 2 ACCESS TO FUNDAMENTAL RIGHTS : MULTIPLE DIMENSIONS 38 Links between poverty and employment : a broad spectrum of situations 39 The relationship between poverty and unemployment 39 Development of poverty in employment : the working poor 42 Chronic difficulties in accessing training for the unemployed and the least qualified wage-earners 47 Employment policies and policies to fight poverty : sometimes divergent rationales 51 Multiple deprivations and constraints weigh heavily on lifestyles of poor individuals and on access to fundamental rights 56 Inequities in consumer spending : a reflection of budgetary cutbacks 56 Differences in food consumption and quality of products consumed are telling in situations of poverty 58 3 Despite the significant impact of the CMU (Universal Sickness Insurance), difficulties persist for poor households in terms of health 59 A structural phenomenon of eviction of poor households in the housing market 62 CHAPTER 3 TERRITORIES AND POVERTY 67 Poverty in France : increasingly urban 69 Poverty is concentrated in a few regions 69 Poverty continues to grow in urban areas 71 Local observation is essential to understanding how poverty situations arise 72 Factors of territorial poverty situations are now compounded in multiple ways 72 Cumulative phenomena of poverty in certain areas 76 Local poverty figures are influenced by history, the socio-cultural context and public policies 78 The difficulties faced by social workers in intervening in poverty-related situations 80 Poverty in the overseas départements 82 Poverty is more widespread in the overseas départements than in mainland France, given the slower economic development 83 High poverty intensity 85 Transfer policies, which have been widely transposed from mainland France, are reaching saturation point 87 CONCLUSION 90 BIBLIOGRAPHY 92 APPENDICES Acronyms used 103 The Observatory 106 4 The Board of the Observatory President : Agnès de Fleurieu de la santé publique (National School of Public Health) 7 members by right Maryse Marpsat, Institut national d’études démographiques (National Institute of President of the National Council for the Fight Demographic Studies) Against Poverty and Exclusion, Bernard Seillier, senator Jean-Luc Outin, economist, researcher with the CNRS, director of the UMR Matisse and INSEE (National Institute for Statistics and director of the Centre associated with the Economic Studies), represented by CEREQ pour the Île-de-France region Françoise Maurel Roxanne Silberman, researcher with the Commissariat général du Plan (General CNRS and Inter-ministerial Commission for Planning Commission), represented by social science data Pierre-Yves Cusset Hélène Zajdela, economic professor at the Direction de la recherche, des études, de University of Villetaneuse, Paris XIII l’évaluation et des statistiques (DREES, Division of Research, Studies, Assessment and Statistics), Ministry of Social Affairs, 7 competent individuals Employment and Solidarity, represented by who have contributed or continue to contribute, by Mireille Elbaum their actions regarding integration and the fight Direction de l’animation de la recherche et against exclusion des études statistiques (DARES, Division of Michel Bérard, representing Voisins et Research Organization, Studies and citoyens en Méditerranée Statistics), Ministry of Social Affairs, Jean-Pierre Bultez, director for development Employment and Solidarity, represented by and communication, Petits Frères des Béatrice Sédillot pauvres, coordinating member of EAPN- Direction générale du trésor et de la politique France économique du ministère de l’Économie, des Françoise Coré, member of Atd-Quart Finances et de l’Industrie (General Monde Directorate of Treasury and Economic Policy, Ministry of the Economy, Finance and Patrick Henry, doctor, head of the Lutte Industry) represented by Alexandre Vincent contre l’exclusion (Combat against exclusion) department at RATP (Paris Urban Caisse nationale des allocations familiales Transportation System) (National Family Allowance Fund Agency), represented by Hélène Paris Loïc Richard, director of Insertion and Plan local pour l’insertion et l’emploi (PLIE, Local Plan for Integration and Employment) for the 7 academics and researchers greater Rennes metropolitan area who are recognized as experts in the field of Hélène Strohl-Maffesoli, Inspectorate for poverty and exclusion Social Affairs (IGAS) Michel Autès, sociologist, researcher with Marie-Françoise Wilkinson, former director the Centre national de la recherche of the European Anti-Poverty Network. scientifique (CNRS, National Scientific Research Centre) Jacques Freyssinet, professor at Université Paris I, president of the scientific commission Protractors : Étienne Grass of the Centre d’études de l’emploi (CEE, Gautier Maigne Centre for Employment Studies) Secretary General : Marie-Thérèse Espinasse Michel Legros, director of the Politics and Head of project : Juliette Zara Institutions Department at the École nationale Secretary : Laurence Fournier 5 Introduction This fourth report by the National Observatory on Poverty and Social Exclusion (2005-2006) assesses evolutions in long-term poverty and in the recent period, as stipulated by the 29 July 1998 Act for combating social exclusion, which led to the Observatory’s creation. The report presents the analyses and viewpoints of the three sectors comprising the Observatory : representatives of social and economic administrations ; qualified individuals who have contributed or are contributing to the fight against poverty ; and university professors and researchers. Another volume, entitled “Les Travaux”, presents the studies carried out for the Observatory, conducted under the sole responsibility of the authors. These were also used to draw up this report. Throughout 2005, the Observatory sought to contribute to the work currently underway in several national and international proceedings to revise and improve the indicators used for measuring the phenomena of poverty and social exclusion. It pursued its research into the multiple dimensions of poverty and the difficulty of obtaining fundamental rights for people living in poverty. Access to employment, literacy and restricted consumption were analysed in more depth. The Observatory seeks a better assessment of territorial data for a more in-depth understanding of the phenomenon of poverty, a better understanding of the actual situations of people and a more specific grasp of the mechanisms involved in exiting poverty and in becoming poor. In pursuance of this goal, this report includes a series of studies on poverty in the French overseas departments. Greater poverty The most recent available data on monetary poverty is from 2003. The decline in monetary poverty 6 observed in 2001 and 2002 ended in 2003. The rate of monetary poverty actually increased in 2003 for a threshold of 50 % of median income and stabilised at a threshold of 60 % of this same median income. Poverty varies with age, gender and type of household. The situation is worse for single individuals and single - parent families - a category in which women form the large majority of heads of households. Since 1999, we have therefore noted a consistently larger proportion of women among the poor population. Young people under age 25 are also over-represented in the group of poor people in relation to their percentage in the overall population. There may be concerns over a possible increase in poverty among the elderly, however, especially single individuals. A comparison of monetary
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