Welcome to Research Insights, where we put the focus on the Department of Economics' research output, events and conferences.
Each month, we sit down with a member of our department to learn more about a published paper, or a recent event or conference they have attended.
This month, we spoke to Professor Barra Roantree . His paper "“Income Inequality in Ireland, 1987-2019” is co-written with Michelle Barrett and was published in the June 2024 issue of the Fiscal Studies.
"Income Inequality in Ireland, 1987-2019"
Michelle Barrett and Barra Roantree
Fiscal Studies | June 2024
Abstract: Ireland has experienced rapid – if volatile – growth over the last three decades. While this performance looks less impressive when considered over a longer horizon and is better seen as belated convergence making up for lost time in the first 50 years of independence, this paper highlights an aspect of the Irish experience that does stand out as quite remarkable: how broad-based and inclusive growth in household disposable income was. Drawing on over three decades of harmonised household survey data, we first show that income inequality fell substantially over this period, the product of disposable income growth that was stronger at the bottom than the middle or top of the distribution. We then tentatively suggest some important factors that might have contributed towards the patterns of growth experienced – including tax and transfer reforms, a rise in two-earner couples and a fall in the average size of households – before concluding with some directions for future research..
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Barra Roantree
His research focuses on the design of the tax and welfare system, and the evolution and distribution of living standards in Ireland.
Can you explain what this paper is about for anyone unfamiliar with the abstract?
This paper shows that the growth in Irish incomes experienced between 1987 and 2019 was remarkably progressive: that is, stronger at the bottom of the distribution than the top. This pattern of income growth led to a substantial reduction in income inequality with the paper highlighting the role played by demographic changes like the decline in average household size alongside tax and transfer reforms.
Why did you decide to write this paper?
This paper was written as part of the IFS Deaton Review of Inequalities Country Studies project, which aimed to examine a broad set of inequalities in a coherent framework across the major economies of Europe and North America and how they have changed in recent decades.
How do you see this research making a difference in the real world?
This research helps inform debate among policymakers and the wider public about inequality and the distribution of income. Such evidence about how and why income inequality has changed over time is an essential part of such debates, which have become increasingly prominent in recent times.
March 2025