Walsh, James A. (2023) Income Distribution and Redistribution in Ireland: A Geographical Exploration. Maynooth University Social Sciences Institute, Maynooth. ISBN 978-1-7392351-0-9
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Abstract
The distribution and redistribution of household incomes are explored at multiple geographical
scales (state, region, county, metropolitan area and electoral district) using several databases
compiled by the Central Statistics Office. This work complements an extensive body of
published research that has been mostly undertaken at the level of the State without much
consideration of trends and patterns at the levels of regions and smaller units. The focus
here is primarily on a geographical exploration at different spatial scales of the distribution
of incomes and of the factors that have influenced the distributions. International research
has concluded that the transition to neoliberal economic strategies in most economically
advanced countries over the last forty years was accompanied by an increasing divergence in
per capita incomes between regions. In Ireland, however, the impact of neoliberal economic
strategies in the context of an exceptionally open economy, was moderated for a period of
over twenty years from the mid 1980s by an innovative and dynamic national model of social
partnership.
Personal and household incomes in Ireland increased significantly over the last 30 years and
the overall level of inequality measured across all households in the State decreased, but
it is still high in comparison to other EU countries, especially for market-based income. At
the regional level, disparities in household incomes have declined but there remain large
differences between the Dublin-dominated East region and the strongly rural Border and
Midland regions. The transition to lower levels of inequality occurred in phases linked to the
trajectory of the national economy. Inter-regional convergence was more likely during periods
of significant economic slow-down as in the 1980s and again in the immediate aftermath of
the economic and financial crisis in 2008. This particular form of convergence was not due to
poorer regions ‘catching up’ with richer regions. It was instead more likely to be associated
with a weakening of the stronger regions, while State transfers to low-income households
and regions remained more resilient.
Over the longer term, the evidence points towards a pattern of convergence between urban
and rural areas in average household incomes. The micro-geographical data for 2016 at the
level of Electoral Districts provide two important insights that are not apparent from regional
data. Firstly, after exclusion of the five largest cities, there is no statistical relationship
between median household incomes and the population size of settlements. The relative
location of settlements in relation to the larger centres of employment, and especially the
extent of commuting, is much more important. Secondly, the 2016 data show that the highest
levels of inequality in income distribution profiles occur in both the cities and in some of the
poorest rural counties, while the lowest levels are found in counties that experienced the
highest levels of population increase over recent decades.
The overall distribution map of household incomes is directly influenced by two sets of
factors. The first relates to the spatial distributions of employment and earnings in different
economic sectors. The second relates to the role of State transfers that provide benefits to a
wide range of persons and households. They are especially important for places that may be
considered ‘left-behind’ in the overall restructuring of the economy and society. In addition
to the direct influences on the geography of incomes levels there are important background
factors related especially to demography, education, female participation in the labour force
and where households choose to live.
The findings from the research have implications for many areas of public policy, most
especially in relation to the spatial organisation of economic and social development. These
challenges are not unique to Ireland and have contributed to narratives that extend beyond
economic considerations to include potential adverse impacts on social cohesion, spatial
justice and on basic principles of democracy if the underlying processes are not addressed.
The experience from other countries, along with the patterns that remained dominant
in Ireland, is that traditional approaches to regional development are no longer adequate.
Policies that sought to overcome market failures and that relied on welfare transfers from
rich to poor regions did not succeed. Neither did policies that sought to maximise the national
economic growth by promoting agglomeration into the largest cities. The more recent focus
on place-based development with a more explicit concern for a holistic, human-centred
approach informed by principles of spatial justice offers a prospect for a better future in all
regions and places.
While this research was being undertaken, there were some significant events that may impact
on the future geography of incomes in Ireland. These include such international events as the
departure of the UK from the EU, the legacy of the COvID 19 pandemic which accelerated
a transition to new working arrangements including remote working, and the disruption of
the global economy following the Russian invasion of Ukraine with consequent impacts on
the costs of living especially for the elderly and those living in some rural areas. In addition,
in Ireland there are very significant challenges in relation to the supply and affordability of
housing. The critical roles of further and higher education in relation to employment and
regional development are being addressed through recent reforms in both sectors, though
these need to be linked more strongly to the overall strategy for regional development.
Further research is needed to examine in more detail the relationship between the geographical
distribution of incomes and commuting, and how it may be impacting on summary measures
for rural and urban areas. In addition, a more sophisticated approach to the identification of
a multi-level typology of places that includes both urban and rural areas and the linkages
between them is urgently required to avoid a risk of over-simplification in the interpretation
of the patterns revealed by the data.
Item Type: | Book |
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Keywords: | Income Distribution; Income Redistribution; Ireland; Geographical Exploration; |
Academic Unit: | Faculty of Social Sciences > Geography |
Item ID: | 16914 |
Depositing User: | Prof. Jim Walsh |
Date Deposited: | 07 Feb 2023 09:42 |
Publisher: | Maynooth University Social Sciences Institute |
Refereed: | Yes |
URI: | https://mural.maynoothuniversity.ie/id/eprint/16914 |
Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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