Single-parent families are more financially disadvantaged in Romania than in Western European countries

Single-parent families in Romania are more financially disadvantaged than those in Western Europe: a single parent must work more hours per week to escape poverty^[1], and the cost of raising two children is as high as for a family with both parents, whereas in Western Europe, thanks to various social assistance schemes, the cost is lower.

The average net cost of raising children^[2] in Romania between 2018 and 2022, relative to average income, is similar for both single-parent families and families with both parents. This contrasts with the OECD average, where the cost is lower for single-parent families.

The OECD average shows that for a family with two children aged 2 and 3, where both parents work—one earning an average salary and the other earning 67% of the average salary—the costs represent 13.6% of the average salary. In contrast, for a single-parent family with an average salary and two children aged 2 and 3, the costs amount to 8.6% of the average salary. The average for Romania is 10.8% for both types of families^[3].

Romania is below the OECD average in terms of the average net cost of raising children for a family with both parents, but above the OECD average when it comes to single-parent families. The situation is the same in most countries in Central and Eastern Europe, where costs are similar for both single-parent and two-parent families. The exceptions are Bulgaria and Croatia, where the cost for single-parent families is 4.4% and 3.2% of the average wage, respectively, and for two-parent families it is 6.4% and 5.8%, respectively. In Western European countries, where social benefits for single-parent families are more common, there is a lower cost for single-parent families. For example, in France, the average cost for a single-parent family is about half that of a two-parent family (5.8% vs. 11.4%). The same is true in Finland (11.8% vs. 17.6%), Denmark (5% vs. 11%), the Netherlands (9% vs. 18.8%), and the United Kingdom (17.4% vs. 25.4%).

Furthermore, in Romania, a person raising two children alone, paid the minimum wage, must work 46 hours per week to escape poverty, compared to only 20 hours if they were paid the average wage. The situation is better if the person does not have children, having to work 33 hours per week on the minimum wage or 14 hours if they earn the average wage. Employees in Romania have to work more hours if they have children, regardless of their wage level compared to the OECD average. These data indicate that single-parent families are at a significant financial disadvantage.

These data highlight that financial support for single-parent families in Romania is insufficient. To align with European standards, Romania needs to strengthen its policies to provide financial support to single-parent families. Moreover, these costs are obviously higher for families earning the minimum wage. Consequently, Romania needs a broader social policy that adapts the minimum wage to the real costs of living (see minimum consumption basket for a decent living) in order to enable those on minimum incomes to have a decent living.

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Data processing and text design: Maria-Luiza Apostolescu

Infographic: Pascalone Media SRL

Notes

^[1] The poverty threshold is calculated as 50% of the median income in the country.

^[2] This indicator measures the net costs for parents who use full-time childcare services (e.g., nurseries and kindergartens, public or private), deducting from the gross cost social benefits such as child care allowances, tax breaks, fee reductions, and increases in other social benefit entitlements.

^[3] Source: OECD https://www.oecd-ilibrary.org/employment/net-childcare-costs/indicator/english_e328a9ee-en