Earnings inequality, institutions and the macroeconomy – what can we learn from Ireland’s boom years?

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Title: Earnings inequality, institutions and the macroeconomy – what can we learn from Ireland’s boom years?
Authors: Maitre, Bertrand
Nolan, Brian
Voitchovsky, Sarah
Permanent link: http://hdl.handle.net/10197/2688
Date: Mar-2010
Abstract: Rapid economic growth is often expected to lead to increased returns to education and skills and thus to rising wage inequality. Ireland offers a valuable case study, with distinctive wage-setting institutions and exceptional rates of growth in output, employment and incomes in the Celtic Tiger period from 1994 to 2007. We find that dispersion in (hourly) wage inequality fell sharply to 2000, before increasing though much less sharply to 2007. Returns to both education and work experience declined considerable 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. For 2000-2007 the faster increase in higher earnings may be associated with the changing pattern of immigration and of the employment growth in the second half of the boom, Further exploration of the factors at work towards the top of the distribution during these years is an important research priority.
Funding Details: Not applicable
Type of material: Working Paper
Publisher: University College Dublin. Geary Institute
Keywords: Earnings dispersionMinimum wageReturns to education
Subject LCSH: Income distribution--Ireland
Minimum wage--Ireland
Education--Economic aspects--Ireland
Wages--Effect of education on--Ireland
Other versions: http://ideas.repec.org/p/ucd/wpaper/201016.html
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers

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