The Distribution of Income in Ireland

Over the 1980s and 90s there has been an international tendency towards increases in overall income inequality. In Ireland, the picture is more complex: over the period 1973-87 inequality fell markedly mainly due to the increasingly redistributive effects of taxation. This trend continued over the years 1987-94 but at a slower pace. In the most recent period studied (1994-98), however, there has been a marked reduction in the share of income accruing to the bottom 30 per cent of the population, due mainly to a diminution in the equalising effect of social welfare transfers. Compared with other EU countries, Ireland is shown to have a relatively unequal income distribution.