Economics in a picture
Consumption inequality in Portugal has decreased in recent decades
According to the microdata underlying the Family Expenditure Surveys conducted by Statistics Portugal, inequality in household consumption in Portugal (measured by the Gini coefficient of monetary expenditure) decreased substantially in the period 1995-2015. This reduction is associated with a strong intergenerational decrease in inequality. In fact, more recent generations have lower consumption inequality compared to previous generations when they were the same age.
This decrease in inequality may be partly associated with the strengthening of the “insurance” (smoothing) mechanisms of income and consumption of Portuguese households in this period. These mechanisms include the increase in public transfers to households, the increasing female participation in the labour market and the increased access to the credit market.
For further details see Alves, Cardoso and Monteiro (2020) “A characterization of income and consumption inequality in Portugal”, published in Banco de Portugal Economic Studies, vol. VI, n.1.
Prepared by Nuno Alves, Fátima Cardoso and Nuno Monteiro. The analyses, opinions and findings expressed above represent the views of the authors and not necessarily those of Banco de Portugal or the Eurosystem
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