Excellent lecture on 23rd January "Understanding income inequality in Ireland"

[Sophrosyne]

The problem in drawing conclusions from the Gini coefficient is that it only relates to income distribution.

Two countries one wealthy and one poor could have the same Gini coefficient, but the basic standard of living in the poor country could be far below that of the wealthy country.

Two families with the same income and equal in all respects might differ substantially in wealth because one family is better at money management.

As other posters have mentioned it is taken at a point in time. Fortunes can go up or down as people progress through life.

But there is also the problem of expected outcomes and observable results. For instance, people with a good education should have greater earning power. What if they don’t? Is this the result of an unknown variable?

I think the most important issue is on the final slide:

“… and –of course –to collect better data
-Know little about intergenerational inequality & mobility
-… or the joint distribution of income, consumption & wealth
-… or the composition & extent of incomes at the very top”.

 

[NoRegretsCoyote]

A lot was familiar but this was new:

The problem in drawing conclusions from the Gini coefficient is that it only relates to income distribution.

Two countries one wealthy and one poor could have the same Gini coefficient, but the basic standard of living in the poor country could be far below that of the wealthy country.

Of course, which is why the UN uses dollar or two-dollar a day thresholds to measure absolute poverty. This wouldn't be popular in Ireland as no one is dollar-a-day poor!

On your other point, higher-income countries tend to have lower inequality than poor-income countries.

Also, income inequality tends to fall only when countries have very strong periods of growth moving from low- to middle-income status as a nation for example.

Ireland is already a rich country though, so I don't expect the Gini to shift much in my lifetime.

 

[josh8267]

A lot was familiar but this was new:


Of course, which is why the UN uses dollar or two-dollar a day thresholds to measure absolute poverty. This wouldn't be popular in Ireland as no one is dollar-a-day poor!

On your other point, higher-income countries tend to have lower inequality than poor-income countries.

Also, income inequality tends to fall only when countries have very strong periods of growth moving from low- to middle-income status as a nation for example.

Ireland is already a rich country though, so I don't expect the Gini to shift much in my lifetime.

Don't think Ireland is as rich as you think , using taxes to remove inequality only works while Ireland has a high income sector that could change very quickly as we seen in the last downturn,
Are you saying you don't see how this could happen in your life time, total income can go down fast in Ireland ,
people who have high income prospects already move when Ireland cannot match the going rate they can earn in other places,

 

[NoRegretsCoyote]

Don't think Ireland is as rich as you think ,

Ireland is a rich country. Not as rich as the US or Switzerland, but a rich country.

 

[josh8267]

Ireland is a rich country. Not as rich as the US or Switzerland, but a rich country.

You may be correct,NoRegretsCoyote
Ireland is a rich country but very small changes could change all that, the same small changes to USA or Switzerland would hardly notice it happened,

 

[josh8267]

I've lived in France and can attest to the considerable supports available. You're also not paying as much in pre/after school fees as the school day is also longer, starting around 8:30am and finishing around 4:30pm for the younger kids, and even later for older ones, with a much longer lunch time (1.5 hrs). Lunch itself is also provided by the state/school in the canteen. The only thing Ireland does better in my experience in maternity leave which is much shorter, and with a much greater expectation that women return quickly to the workplace.

In Ireland we use the Income tax system to reduce inequality most other EU Countries use social insurance,
In Ireland in the last down turn the so called rich found themselves poor over night with the loss of there job,/work/company/buisness,

The French model of childcare would greatly help women enter the workforce.

The French model is close to what is used in most of the EU,
I do not agree Ireland is a rich Country like USA/Switzerland,
You yourself seen your wages reduce by around 45% in the down turn ,the loss of payroll tax's from the reduction affected you, the state borrowed to fill the gap left by lower taxes when it came to Inequlity, when your wages went up I bet you are going to pick up the tab in higher taxes lower state pension in the future,
There is nothing rich about this State,

 

[Brendan Burgess]

He will be giving the same lecture in Cork

The Statistical & Social Inquiry Society of Ireland [ssisi.ie]

invites you to attend the 2019/2020 Barrington Lecture, "Understanding income inequality in Ireland", by Barra Roantree (Economic & Social Research Institute & Trinity College Dublin)

to be delivered on: Thursday 27th February 2020 at 1pm

at the: Central Statistics Office, Skehard Road, Cork (T12 X00E).



Abstract: This paper examines how household income is distributed in Ireland today, how that compares to the past and to our neighbours in Europe. It finds that strong and balanced growth over the past 30 years – averaging around 4.5% annually – has acted to reduce disposable income inequality on most measures. However, market income inequality has risen at the top and now stands among the highest in Europe. The paper investigates the reasons for such high levels of market income inequality and considers the implications for policy, in particular for the design of our tax and benefit system.

Please note the different time and location of the talk. The Central Statistics Office has kindly offered to provide refreshments for the talk. For that reason, those intending to attend the meeting are requested to notify Chloe Horan, of the Office of the Director General, using the email in CC (DGOffice@cso.ie).

Non-members are welcome to attend and participate in the discussion.