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The growing disconnect between food prices and wages in Europe: cross-national analysis of food deprivation and welfare regimes in twenty-one EU countries, 2004–2012

Published online by Cambridge University Press:  20 March 2017

Aaron Reeves*
Affiliation:
International Inequalities Institute, London School of Economics and Political Science, Houghton Street, London WC2A 2AE, UK
Rachel Loopstra
Affiliation:
Department of Sociology, Oxford University, Oxford, UK
David Stuckler
Affiliation:
Department of Sociology, Oxford University, Oxford, UK
*
* Corresponding author: Email a.reeves@lse.ac.uk
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Abstract

Objective

Food insecurity has been rising across Europe following the Great Recession, but to varying degrees across countries and over time. The reasons for this increase are not well understood, nor are what factors might protect people’s access to food. Here we test the hypothesis that an emerging gap between food prices and wages can explain increases in reported inability to afford protein-rich foods and whether welfare regimes can mitigate its impact.

Design

We collected data in twenty-one countries from 2004 to 2012 using two databases: (i) on food prices and deprivation related to food (denoted by reported inability to afford to eat meat, chicken, fish or a vegetarian equivalent every second day) from EuroStat 2015 edition; and (ii) on wages from the Organisation for Economic Co-operation and Development 2015 edition.

Results

After adjusting for macroeconomic factors, we found that each 1 % rise in the price of food over and above wages was associated with greater self-reported food deprivation (β=0·060, 95 % CI 0·030, 0·090), particularly among impoverished groups. However, this association also varied across welfare regimes. In Eastern European welfare regimes, a 1 % rise in the price of food over wages was associated with a 0·076 percentage point rise in food deprivation (95 % CI 0·047, 0·105) while in Social Democratic welfare regimes we found no clear association (P=0·864).

Conclusions

Rising prices of food coupled with stagnating wages are a major factor driving food deprivation, especially in deprived groups; however, our evidence indicates that more generous welfare systems can mitigate this impact.

Information

Type
Research Papers
Copyright
Copyright © The Authors 2017 
Figure 0

Fig. 1 Food price inflation (——) and wage inflation (– – –) in Greece (a) and the UK (b), 2005–2012. (Data from EuroStat(17) and Organisation for Economic Co-operation and Development(26) databases)

Figure 1

Fig. 2 Association between the food price–wage disconnect and change in food deprivation, twenty-one EU countries, 2004–2012. When the ‘Food price inflation over and above wage inflation’ variable is greater than zero, then the rise in food prices was greater than the rise in real wages. When the ‘Food price inflation over and above wage inflation’ variable is less than zero, then food price inflation was lower than the rise in real wages. Countries included were Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Luxembourg, the Netherlands, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden and the UK. Model adjusted for annual changes in unemployment and gross domestic product, and includes average annual change in food deprivation over time; β=0·06, P<0·001. (Data from EuroStat(17) and Organisation for Economic Co-operation and Development(26) databases)

Figure 2

Table 1 Food deprivation and the food price–wage disconnect in twenty-one EU countries, 2004–2012. (Data from EuroStat(17) and Organisation for Economic Co-operation and Development(26) databases)

Figure 3

Table 2 Food deprivation, poverty and the food price–wage disconnect in twenty-one EU countries, 2004–2012. (Data from EuroStat(17) and Organisation for Economic Co-operation and Development(26) databases)

Figure 4

Fig. 3 The cost of food (——) and food deprivation (– – –) in Estonia (a) and Germany (b), 2005–2012. (Data from EuroStat(17) and Organisation for Economic Co-operation and Development(26) databases)

Figure 5

Fig. 4 Association between the food price–wage disconnect and food deprivation across welfare regimes, twenty-one EU countries, 2004–2012. Countries included were Denmark, Finland and Sweden (Social Democratic welfare regimes); Austria, Belgium, France, Germany, Luxembourg and the Netherlands (Corporatist); Ireland and the UK (Liberal); Greece, Italy, Portugal and Spain (Mediterranean); and Czech Republic, Estonia, Hungary, Poland, Slovakia and Slovenia (Eastern European welfare regimes). Results are based on model 3 in Table 1. The only difference is that an indicator of welfare regime type is included in the model and an interaction term is created between this indicator and the food price–wage disconnect measure. This model is reported in the online supplementary material, Supplemental Table 2. Hollow circles are the point estimates from the model; vertical bars represent 95% confidence intervals. (Data from EuroStat(17) and Organisation for Economic Co-operation and Development(26) databases)

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