Gender income inequality during the COVID-19 pandemic in Europe: the role of government response

This study provides the first comparative analysis of how COVID-19 policy responses influenced gender income inequality across 28 European countries. Using a quasi-experimental approach that combines microsimulation and nowcasting techniques, we construct counterfactual scenarios to estimate the net effects of pandemic-related labor market shocks and government interventions on the incomes of women and men. By employing a gender-sensitive measure of disposable income, we address intra-household inequality often overlooked in distributional research. Our findings show that although both working age men and women experienced income losses in 2020, these were significantly mitigated by tax-benefit policies. Men, on average, benefitted more from furlough due to greater employment losses and higher pre-pandemic earnings, while women benefitted from the progressive design of other policy measures. On average, the ratio of women’s to men’s disposable incomes rose slightly, indicating a temporary narrowing of the gender income gap. These results highlight the equalizing role of expansive social protection during pandemic and underscore the importance of gender-aware policy analysis.