The Impact of Budget Consolidation on Gender Equality

This brief study has three objectives. First, it systematically outlines the channels and dimensions through which different categories of expenditure- and revenue-side consolidation options affect gender equality. Second, this study aims to enhance understanding of the gender-specific impacts of consolidation measures. Third, using several illustrative policy areas, the study highlights how consolidation measures can affect women and men differently due to their differing socioeconomic conditions. The analysis of three policy areas demonstrates that expenditure-based consolidation measures tend to exacerbate existing gender gaps when cuts to or an insufficient level of public services must be offset by unpaid work (care services). The same is true when reduced cash benefits place a relatively greater burden on women's lower average incomes than on men's. Restrictive employment policies in public service sectors, where women tend to be employed in greater numbers than men, also affect women more severely. The study shows that revenue-based measures can also exacerbate gender gaps, particularly fee increases or increases in consumption taxes that do not consider individual income levels. Increases in social security contributions as well as income or payroll taxes in the lower income bracket also tend to widen the gender pay gap. The analytical frameworks developed as part of the study can be applied to all policy areas to identify structural gender-specific effects.