The Economics Of The🎄Holiday Magic
Unwrapping The Secret Helper That Drives The Season
Every year I’ve had a front row seat witnessing women all around the world—from New York to Los Angeles, from Lagos to London—create the holiday magic. Every mother looks forward to creating the holiday magic for their family, and its one that I take seriously. The holiday season is often referred to as “the most wonderful time of the year,” but behind the twinkling lights and wrapped presents lies a significant economic engine fueled largely by women. From their purchasing power to their unpaid labor, women play an indispensable role in driving the holiday economy. Yet, their contributions often remain undervalued and invisible in traditional economic analyses.
What happens when we look at holiday magic through the lens of economic theory?
Let’s explore how women’s time, money, and purchasing power shape economic outcomes during this critical season.
Women’s Purchasing Power: The Backbone of Holiday Spending
Economic Data + Insights:
Women drive 70-80% of consumer purchasing decisions, from gifts to groceries, making them the primary economic agents during the holidays.
New research shows that mothers take on 71% of household cognitive labor including planning, scheduling, and organizing, while fathers over-reported their labor as 45%, with this divide widening during the holiday.
The National Retail Federation reports that holiday retail sales in the U.S. reached over $900 billion in 2023, with women responsible for the bulk of this spending.
Economic Impact:
This consumer activity supports industries such as retail, logistics, entertainment, and travel, generating millions of jobs and boosting GDP. Women’s choices influence product trends, pricing strategies, and supply chain dynamics during the season.
Unpaid Labor: The Hidden Subsidy in the Holiday Economy
Statistical Insights:
Women spend an average of 7 additional hours per week on unpaid household tasks during the holidays, from cooking festive meals to organizing events.
The global value of unpaid labor is estimated at $10.8 trillion annually—equivalent to 13% of global GDP—according to the International Labour Organization.
Economic Impact:
This unpaid labor acts as a hidden subsidy, propping up the formal economy. If families had to outsource this labor—holiday baking, decorating, childcare—it would represent a significant economic cost. Yet, these contributions are absent from GDP calculations, perpetuating the invisibility of women’s work.
Time Poverty and the Opportunity Cost for Women
Economic Theory at Play:
The concept of opportunity cost—the value of the next best alternative—applies directly to women’s holiday contributions.
As women dedicate more time to unpaid labor, they often sacrifice career advancement, income-generating activities, and personal well-being.
Statistical Insights:
Research shows that women reduce their paid work hours during the holidays by up to 30% compared to men.
This contributes to persistent gender pay gaps and lost productivity in the workforce, estimated at $160 trillion globally over a lifetime, according to the World Bank.
Women as Catalysts for Local Economies
Spending Patterns:
Women’s holiday spending often prioritizes community-focused purchases, such as gifts from small businesses, local markets, and service providers.
Studies show women are more likely to reinvest in their communities, supporting local economies through their spending choices.
Economic Multiplier Effect:
Every dollar spent by women during the holidays ripples through the economy, supporting not just retailers but also secondary sectors like hospitality, entertainment, and transportation.
The Emotional Economy: The Intangible Value of Holiday Magic
Beyond dollars and cents, women’s contributions drive the emotional economy of the holidays: the sense of connection, joy, and belonging. Economists often overlook these intangible benefits, yet they underpin social cohesion and community well-being.
The Need for a Gendered Lens in Economic Policy
The holiday season highlights a broader issue: women’s labor, both paid and unpaid, remains undervalued in economic systems. Policymakers and economists must adopt a gendered lens to:
Account for unpaid labor: Include it in GDP calculations to reflect its true economic value.
Support women’s economic participation: Through childcare support, flexible work policies, and fair labor practices.
Promote equitable sharing of unpaid labor: Encourage men to share caregiving and holiday responsibilities.
A Call to Action: Recognizing Women’s Contributions
The holiday magic we cherish wouldn’t exist without women’s time, money, and emotional labor. As we enjoy the season’s festivities, it’s time to give their contributions the economic recognition they deserve.
By shining a light on the gendered dynamics of holiday labor, we can advocate for a more equitable economy—one where women’s efforts are not just celebrated but also valued and compensated.
Let’s make this holiday season not just magical, but meaningful—for everyone.
The Gift Of Time
Our friends at The Sandwich Club, a modern community and resource hub for caregivers, have launched an exciting campaign to give caregivers what they really want this season – the Gift of Time. Download the kit for ideas on getting back time, inspirational images, and ways to ask the people in your life for the time you need. Share them on your socials, in your group chats, and with anyone else you think needs a nudge to ask for time!
We love what they’re doing and hope you’ll check it out!
The Care Gap is authored by Blessing Oyeleye Adesiyan, CEO + Founder of The Care Gap and Caring Africa, an Engineer & Care Economist, combining the power of storytelling, policy advocacy, and technology to strengthen families, workplaces, and economies + advance the global care economy.