The Gendered Nature of the Cost-of-Living Crisis in Europe

Denisa Sologon, Karina Doorley, Cathal O'Donoghue and Eugenio Peluso

No 16820, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: inflation and gender; inflation inequality and gender; distributional effect and gender; welfare effect and gender (search for similar items in EconPapers)
JEL-codes: D12 D31 D60 E31 I30 J16 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2024-02
New Economics Papers: this item is included in nep-eec and nep-gen
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Citations: View citations in EconPapers (2)

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