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The economic situation in Luxembourg is affecting men and women differently, according to a new report published by LISER.
A new study by the Luxembourg Institute of Socio-Economic Research examined the housing and inflation situations in the Grand Duchy, finding that women in low income brackets were suffering more as a result of the housing crisis, compared to men, and were worse off compared to other vulnerable households.
LISER CEO Aline Muller explained: "The expense/income ratio has jumped up as a result of the increase in housing costs, affecting women far more than men, but above all affecting women who are single parents. This is the real jump-off point, and the real difference between female and male single parent households."
Over 86% of single-parent women in Luxembourg are affected, with the additional inflation contributing to their precarious finances in recent years. In terms of expenses alone, men and women are equally affected, but Muller explains that households in which women are the main breadwinners tend to spend a larger proportion of their income on heating, electricity and food. "the data shows that women's basic necessities are far more important to them, which is where they have been hit particularly hard by inflation, and in real terms, this is reducing their actual income."
Women therefore have to save more than men in other positions. The LISER study was carried out in collaboration with the Ministry for Equality and Diversity, with researchers recommending that politicians respond to the issue with targeted measures. Minister Yuriko Backes was asked what this could mean in real terms - for example, should women benefit more from indexation than men? Should there be higher housing and rent allowances for women?
Backes explained it was complicated.
"In terms of housing benefits, it is hard to say that women should receive more than men. We'd have to carry out analysis on the most vulnerable recipients, and I think this is in part what already happens, as the criteria that already exists for this support does take into account vulnerability. I think the way this aid is calculated already is the right way."
The Minister for Equality also highlighted the tax credit for single parents, which was put into the spotlight during Backes' previous role as finance minister. "This tax credit is of course not specifically aimed at women, but we know that the majority of single parents in Luxembourg are women. So these women can continue to profit from measures such as this one."
