The Government’s decision to raise the State’s minimum wage in 2016 reduced income inequality but had little impact on overall household income, a new study has found. The research by the Economic and Social Research Institute (ESRI) analysed the impact of a 6 per cent hike in the State’s minimum wage in 2016, which brought the rate from €8.65 to €9.15 per hour. It found that hourly wage inequality between high and low earners reduced by up to 8 per cent on foot of the change. The State’s minimum wage was raised to €9.55 an hour in 2018. However, it did find there had been a reduction in the average hours worked by minimum wage employees.

Source: The Irish Times March 07, 2019 06:00 UTC