The gendered nature of the cost-of-living crisis in Europe
Sologon, Denisa Maria ; Doorley, Karina ; O'Donoghue, Cathal ; Pelusa, Eugenio
Institute of Labor Economics, Bonn
IZA - Bonn
2024
47 p.
inflation ; gender ; social inequality ; welfare economics ; cost of living
Discussion Paper
16820
Social sciences
https://docs.iza.org/dp16820.pdf
English
Bibliogr.
"This paper investigates the gendered effects of the cost-of-living crisis on households across six European countries using household consumption data linked to price changes between April 2021 and July 2023. It examines how different consumption patterns between male- and female-headed households influence their exposure to inflation. Exploring the full distribution of inflation rates, employing quantile regressions and a decomposition approach, this research uncovers gender-specific disparities in inflation exposure and inequality. Going beyond the immediate economic index adjustments, it also evaluates the welfare changes attributable to inflation by estimate a behaviourally-adjusted welfare effect of the cost-of-living crisis. Building on the foundational Atkinson welfare measure, this paper innovates by decomposing the change in welfare into equity and efficiency components, differentially for male- and female-headed households. This contribution enriches the consumption literature by providing a detailed gendered analysis of inflation's distributional and welfare effects, aiding policymakers in addressing the nuanced challenges of the cost-of-living crisis."
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