Coronavirus Crisis in Germany Hits Low-Income Families Hardest
Low-income families are bearing the financial brunt of the coronavirus crisis in Germany, according to an ifo Institute survey of 2,216 parents. For one-third of respondents, money is now more likely to be tight at the end of the month than before the pandemic. “Families that are particularly affected are those below the poverty line, those with only one working parent, and those where the parents cannot work from home,” says ifo researcher Benjamin Arold. But overall, three-quarters of respondents say they are doing well in the coronavirus crisis.
The financial difficulties have concrete consequences for 41 percent. “In the 12 months prior to the survey, they had for example received reminders for missed payments or had to use overdrafts. And 7 percent of parents even had to forgo meals because of money constraints,” Arold says. Roughly half the parents surveyed (47 percent) changed their consumption behavior during the coronavirus crisis and spent less than before.
These findings are based on an online survey of 2,216 parents conducted in November 2020, when Germany was in its second lockdown. The survey was aimed at families with a net monthly household income below 3,000 euros and minors living in the same household.
Publication
How Are Lower-Income Families Faring in the Coronavirus Crisis?
ifo Institut, München, 2021
ifo Schnelldienst, 2021, 74, Nr. 06, 46-49
