Impact of Financial Crisis on European Households

The main aim of this article is to describe impact of the recent financial crisis on the average European family, namely on the main indicators that have impact on household income and its well-being - unemployment rate, and wage dynamic. The dynamics of main indicators should influence household response - revealed in household expenditures, indebtness and savings dynamics. The analysis of main economic indicators is based on the quarterly and annual data for the period of 2000-2010. Moreover, another goal is to reveal possible long-term relationship and short-term co-integration of unemployment rate and the household consumption as the main indicator of household possible reaction to expected or observed level of family income. Results indicate that the household responses to financial crisis vary from country to country.