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Wage Inequality in Ireland’s “Celtic Tiger” Boom

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  • SARAH VOITCHOVSKY

    (University College Dublin)

  • BERTRAND MAITRE

    (Economic and Social Research Institute Trinity College Dublin)

  • BRIAN NOLAN

    (University College Dublin)

Abstract

Ireland offers a valuable case study of the evolution of wage inequality in a period of exceptional growth in output, employment and incomes from 1994 to 2007. We find that dispersion in hourly wages across all employees fell sharply to 2000, before increasing though much less sharply to 2007. Returns to both education and work experience declined considerably in the earlier period, while the increase in lower earnings relative to the median was associated with the introduction of the minimum wage in 2000, anchoring the bottom of the distribution subsequently. The more rapid increase in higher earnings in the latter part of the boom may be associated with the changing patterns of immigration and employment growth.

Suggested Citation

  • Sarah Voitchovsky & Bertrand Maitre & Brian Nolan, 2012. "Wage Inequality in Ireland’s “Celtic Tiger” Boom," The Economic and Social Review, Economic and Social Studies, vol. 43(1), pages 99-133.
  • Handle: RePEc:eso:journl:v:43:y:2012:i:1:p:99-133
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    Cited by:

    1. Logue, Caitriona & Colgan, Brian & Callan, Tim, 2016. "Low Pay, Minimum Wages and Household Incomes: Evidence for Ireland," Papers BP2017/3, Economic and Social Research Institute (ESRI).
    2. Niamh Holton & Donal O'Neill, 2017. "The Changing Nature of Irish Wage Inequality from Boom to Bust," The Economic and Social Review, Economic and Social Studies, vol. 48(1), pages 1-26.
    3. Brian Nolan & Bertrand Maitre & Sarah Voitchovsky & Christopher Whelan, 2012. "GINI DP 70: Inequality and Poverty in Boom and Bust: Ireland as a Case Study," GINI Discussion Papers 70, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Cathal O’Donoghue & Jason Loughrey & Denisa M. Sologon, 2018. "Decomposing the Drivers of Changes in Inequality During the Great Recession in Ireland using the Fields Approach," The Economic and Social Review, Economic and Social Studies, vol. 49(2), pages 173-200.
    5. Cathal O’Donoghue & Jason Loughrey & Karyn Morrissey, 2013. "Using the EU-SILC to model the impact of the economic crisis on inequality," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-26, December.
    6. E. Calvert & Brian Nolan & Tony Fahey & D. Healy & A. Mulcahy & B. Maître & Michelle Norris & I. O’Donnell & Nessa Winston & Christopher Whelan, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Ireland," GINI Country Reports ireland, AIAS, Amsterdam Institute for Advanced Labour Studies.

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