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The transformation of the Irish labour market : 1980-2003

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  • Brendan M. Walsh

Abstract

Traditionally characterised as a labour-surplus economy, Ireland was transformed during the 1990s. An impressive rate of employment growth led to a reduction in the unemployment rate from 15.7% to 4% between 1988 and 2004. Over the same period, labour force participation rates rose markedly and emigration was replaced by a rising net inflow of population. The improvements in labour market outcomes were widely spread across regions, age groups, and educational levels. Employment in agriculture and traditional industrial sectors continued to decline but rapid employment growth occurred in newer manufacturing sectors such as electronics, pharmaceuticals and medical instrumentation, construction, tourism and internationally traded financial sectors. This paper attributes the remarkable transformation of the Irish labour market to a combination of favourable demand side shocks, an elastic labour supply, a growing stock of human capital and a successful return to centralised wage bargaining. The role of structural labour market reforms is discussed and it is argues that their role in the transformation of the labour market was relatively minor.

Suggested Citation

  • Brendan M. Walsh, 2004. "The transformation of the Irish labour market : 1980-2003," Open Access publications 10197/1542, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:oapubs:10197/1542
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    File URL: http://hdl.handle.net/10197/1542
    File Function: Open Access version, 2004
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    References listed on IDEAS

    as
    1. John Curtis & John FitzGerald, 1994. "Convergence in an Open Labour Market," Papers WP045, Economic and Social Research Institute (ESRI).
    2. Walsh, B.M., 1999. "Labour Market Adjustment in the Irish Regions," Papers 99/6, College Dublin, Department of Political Economy-.
    3. Brendan M. Walsh, 1999. "Labour market adjustment in the Irish regions," Working Papers 199906, School of Economics, University College Dublin.
    4. Nickell, Stephen, 2003. "A picture of European unemployment: success and failure," LSE Research Online Documents on Economics 20039, London School of Economics and Political Science, LSE Library.
    5. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    6. Brendan M. Walsh, 2003. ""How 'Live' is the Live Register?" and other puzzles in the measurement of unemployment," Working Papers 200307, School of Economics, University College Dublin.
    7. 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.
    8. repec:bla:econom:v:53:y:1986:i:210(s):p:s23-34 is not listed on IDEAS
    9. 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(1), pages 1-78.
    10. Walsh, Brendan M., 2003. "How Live is the Live Register and Other Puzzles in the Measurement of Unemployment," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2003(1-Spring), pages 1-9.
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    Cited by:

    1. Thia Hennessy & Mark O’ Brien, 2007. "Is off-farm income driving on-farm investment?," Working Papers 0704, Rural Economy and Development Programme,Teagasc.
    2. Amaya Vega & Aisling Reynolds-Feighan, 2008. "Employment Sub-centres and Travel-to-Work Mode Choice in the Dublin Region," Urban Studies, Urban Studies Journal Limited, vol. 45(9), pages 1747-1768, August.
    3. Barry, Frank, 2009. "Social Partnership, Competitiveness and Exit from Fiscal Crisis," The Economic and Social Review, Economic and Social Studies, vol. 40(1), pages 1-14.
    4. Thia Hennessy & Mark O’ Brien, 2006. "The Contribution of Off-Farm Income to the Viability of Farming in Ireland," Working Papers 0613, Rural Economy and Development Programme,Teagasc.
    5. Girma, Sourafel & Görg, Holger & Strobl, Eric & Walsh, Frank, 2008. "Creating jobs through public subsidies: An empirical analysis," Labour Economics, Elsevier, vol. 15(6), pages 1179-1199, December.
    6. Barry Frank, 2017. "The Central Bank’s harmonised competitiveness indicators: Users beware," Administration, Sciendo, vol. 65(4), pages 73-82, December.
    7. Martin Ryan & Siobhan McCarthy & Carol Newman, 2007. "Household Characteristics of Higher Education Participants," Working Papers 200702, Geary Institute, University College Dublin.

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