The gendered inequality impact of the cost-of-living crisis: a comparative analysis

This paper explores the distributional and welfare impact of the cost-of-living crisis in Europe, differentiated by gender, thereby addressing the gap in the literature on gender-specific effects of inflation. Using household consumption data linked to price changes between April 2021 and July 2023 across six European countries, it examines how different consumption patterns between male- and female-headed households influence their exposure to inflation. By relying on the full distribution of household-specific inflation rates and quantile regression approach, the results show gender-specific disparities in inflation exposure and inequality. Across countries, women-led households are more impacted by heating and electricity inflation, while men are more affected by motor fuel and services inflation; in both cases, gender disparities diminish with rising income. The paper further evaluates the welfare changes attributable to inflation by estimating a behaviourally-adjusted welfare effect. Building on the Atkinson welfare measure, we decompose the change in welfare into equity and efficiency components, differentially for male- and female-headed households. By doing it, the paper enriches our understanding of the differential impact of inflation across household types, providing information for designing better and more targeted policies.