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When Unemployment Disappears: Ireland in the 1990s

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Author Info
Brendan Walsh
Abstract

This paper examines the behaviour of the Irish labour market during the 1990s. Over the course of the decade the Irish unemployment rate fell from the highest to the lowest in the EU. Over the same period a record number of jobs was created and all the indicators suggest that full employment was achieved. The primary reason for this "employment miracle" was the output boom, which in turn may be attributed to Ireland's "super competitiveness" in the late 1990s. Several factors contributed to this -- a low exchange rate, the inflow of FDI to high productivity sectors, and wage moderation following the return to centralised wage agreements in 1987. Labour market reforms, including a tightening of the social welfare regime and a switch of spending from income support to active labour market policies, played a positive role. The fact that unemployment has risen only slowly during the current downturn points to the lasting effect of these changes.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 856.

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Date of creation: 2003
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Handle: RePEc:ces:ceswps:_856

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Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
N30 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - General, International, or Comparative

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stefan Szymanski, 2000. "The Political Economy of Sport," World Economics, World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 1(2), pages 101-109, April. [Downloadable!]
  2. Patrick Honohan & Brendan Walsh, 2002. "Catching Up with the Leaders: The Irish Hare," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(2002-1), pages 1-78. [Downloadable!]
  3. Paul Gregg & Kirstine Hansen & Jonathan Wadsworth, 2000. "Poles Apart," World Economics, World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 1(2), pages 55-72, April. [Downloadable!]
  4. Richard Layte & Tim Callan, 2001. "Unemployment, Welfare Benefits and the Financial Incentive to Work," The Economic and Social Review, Economic and Social Studies, vol. 32(2), pages 103-129. [Downloadable!]
  5. Nolan, Brian & O'Neill, Dermot & Williams, James, 2002. "The Impact of The Minimum Wage on Irish Firms," Research Series, Economic and Social Research Institute (ESRI), number PRS44.
  6. Alan B. Krueger & Jorn-Steffen Pischke, 1997. "Observations and Conjectures on the U.S. Employment Miracle," NBER Working Papers 6146, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. John P Martin, 1998. "What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences," RBA Annual Conference Volume, in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia. [Downloadable!]
    Other versions:
  8. Pietro Garibaldi & Paolo Mauro, 2002. "Anatomy of employment growth," Economic Policy, CEPR, CES, MSH, vol. 17(34), pages 67-114, 04. [Downloadable!] (restricted)
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