The economic crisis did not worsen the level of income inequality between the richest and poorest in Ireland, a report has found.
Research published by the Economic and Social Research Institute (ESRI) shows that income inequality widened in the five years to 2013, but by the end of 2015 it fell to pre-recession levels.
Tim Callan, a professor at the ESRI, said that Ireland’s progressive tax and welfare system helped to cushion it from the increases in inequality recorded in countries such as the UK and US.
“Families at all income levels saw income losses during the recession years. Our analysis of Central Statistics Office data helps identify how those changes fit together into a pattern of broad stability in income inequality,” he said.
“The role played by the pre-existing progressive tax and welfare system has been critical in helping Ireland to avoid the rise in income inequality seen in many other countries.
Advertisement
“That’s largely due to the fact that we had a strong welfare safety net and progressive tax system in place at the beginning of the crisis.”