The costs of being female: five hidden ways women pay more

Gender disparities concerning money go much deeper than unequal pay. Women are not only disadvantaged earners, but also disadvantaged consumers. In this article, I show you five ways that women have to shell out more at the check-out line. 

First, in the last couple of years, inflation rates around the world have gone up tremendously, up  to 8% in the United States and 8.6% in Austria in 2022. What not everyone knows is that low-income households use a greater share of their total spending to cover the costs of rising inflation. And of course, who is most likely to head or live in a low-income households, all over the world? Women. 

Second, women pay more to have safe sex. A recent report on contraception in Austria reveals that half of the women are alone in bearing the costs of contraception, while only a quarter share these expenses with their partners. Women report spending between 30 and 230 Euros annually on contraception. In contrast, only 12 percent of men in partnerships take full responsibility for birth control. 

Third, women spend between $2,800 and $7,280 on menstrual products, including pain killers, in their lifetime. The same study reveals that period products in Austria are even more expensive than in most of the states in the US. Another aspect worth noting is that period products are still not tax-free in Europe – with the exception of in Ireland. In Austria, tampons and menstrual pads are taxed at a rate of 20% -- the luxury goods tax – while other essential everyday products (like groceries and medicine) are taxed at 13%.

Fourth, women face the so-called “pink tax” on certain products. Although some gender-specific products may differ in prices due to differences in their production processes, research still finds a considerable unexplained gap between female and male-marketed products. Despite a narrowing price gap between items marketed towards women and men in the last years, personal care products like lotions and deodorants targeted towards women cost more than those targeted towards men. Even pastel-colored pens or girls’ toys and clothing are more expensive than comparable products marketed to boys. The graph illustrates price differences in New York City in 2015: 

Fifth, girls not only have to pay more for their toys, but they might also receive less allowance than their brothers and male peers. Numerous studies have shown that the gender pay gap at work might have its origins in our childhood. In the United Kingdom, boys receive on average 20% more allowance than girls (an Austrian study finds a 17%-gap), giving them a financial advantage of £26 per year. The same study finds differences in how the money is earned between children: boys’ allowance is more linked to academic success and how much money they ask for, while girls receive their allowance based on good behavior and completion of household chores. The data are mixes, though. After finding a gender pay gap in allowance for several years, a new German study suggests that girls now  receive more allowance than boys. Another study from Germany finds no gender pay gap in allowance. The literature and studies on this topic are still scarce and results vary substantially. Nonetheless, the possibility of a gender pay gap in allowance exists and could contribute to differences like the Gender Gap in Financial Literacy, which exacerbates women’s exposure to financial risk later in life.

In conclusion, the economic challenges faced by women extend far beyond the widely discussed gender pay gap. Despite progress in some areas, women continue to be disproportionately affected by inflation and costs associated with daily living. The pink tax and other gender-based price disparities exacerbate the financial strain on women, making it more expensive for them to purchase essential everyday products.