Recession Hits Low-Income Households Hardest, Expenditure Gains Offset Price Losses
The study looked at how different types of households in New Zealand were affected by the 2008/09 recession. They used data from the Household Economic Survey to measure household welfare in terms of income, expenditure, and the impact of price changes. They found that low-income households, those with children, and renters were hit hardest by price changes during the recession. However, despite these losses, low-income households actually increased their spending, which more than made up for the negative effects of price changes.