Dáil Éireann Debate, Thursday - 13 October 2022
278. Deputy Thomas Pringle asked the Minister for Social Protection the rate of income inequality in Ireland both before and after transfers in each of the years 2012 to 2021 and to date in 2022; and if she will make a statement on the matter. [51002/22]
View answerThe Gini coefficient is a standard measure of income inequality, where a smaller number represents greater income equality. The relevant income data is collected as part of the Survey of Income and Living Conditions (EU-SILC) and can be used to measure income inequality in Ireland both before and after social transfers.
The table below uses data from Eurostat, which sets out the Gini coefficient rate for Ireland both before social transfers (pensions are excluded from social transfers under this measure) and after social transfers, for the years 2012 to 2021. Due to a break in time series, data pre and post 2020 is not directly comparable.
|
Year |
Gini Coefficient rate before social transfers |
Gini Coefficient rate after social transfers |
|
2012 |
46.1% |
30.4% |
|
2013 |
46.5% |
30.7% |
|
2014 |
45.5% |
31.0% |
|
2015 |
42.7% |
29.7% |
|
2016 |
41.7% |
29.6% |
|
2017 |
41.6% |
30.6% |
|
2018 |
39.3% |
28.9% |
|
2019 |
38.9% |
28.3% |
|
2020^ |
37.9% |
28.3% |
|
2021 |
38.3% |
26.9% |
Source: EU SILC Data 2012-2021 (ilc_di12) and (ilc_di12c)
The Eurostat data shows that income inequality in Ireland has improved from 28.3% in 2020 to 26.9% in 2021. Without social transfers the Gini coefficient would have been 38.3% in 2021, showing the positive impact that social welfare and tax measures play in reducing income inequality in Ireland.
On an EU wide basis, Ireland is one of the best performing member states in terms of reducing income inequality through social transfers.
