ESRI: Increasing female labour force participation can reduce poverty
Tax Implemented Cent The The For Rate Simulations 2022 Estimate Risk An 14 Per Of Using Switch, Benefit Model, Overall Study At Poverty Esri’s To
Implementing a mix of policy measures, such as increasing female labour force participation and spending more on benefits targeting children would reduce the poverty rate, according to research published by the Economic Social Research Institute (ESRI).
The study commissioned by the Department of Social Protection examined methods of achieving the poverty target of 2% by 2025.
The report found that from the period 2004 to 2019, lone parents and their children and working-age adults with disabilities and their children experienced the highest rates of at-risk-of-poverty, deprivation and consistent poverty.
Consistent poverty is a measure of those who are both at risk of poverty and in deprivation.
The research revealed that in 2019, 57% of lone parents that were income poor were also deprived.
This figure was 49% for those living in households of working-age adults with disabilities.
In 2019, these two groups together account for just over half of those in consistent poverty. In 2019, Ireland's consistent poverty rate stood at 5.5%.
The study implemented simulations using SWITCH, the ESRI’s tax-benefit model, to estimate an overall at-risk poverty rate of 14 per cent for 2022.
The research also detailed that increasing female labour force participation and hours worked to match those of men could reduce the overall at-risk poverty rate by 2.9% and that of children by over 5%.
A further simulation stated that if the head of all jobless households took up a job, there would be a reduction in at-risk poverty rates by 3% for children and by 2% for the whole population.
The ESRI study stated that a variety of policy measures, including activation and social welfare, would need to be implemented to reach the consistent poverty target rate of 2% by 2025.
Bertrand Maître, an author of the study said: “A combination of measures targeting both employment and social transfers is likely to be the most effective way to address poverty reduction targets. This could involve increased spending on benefits targeted at vulnerable groups and tackling barriers to work such as childcare costs.”
Karina Doorley, an author of the report stated: “Encouraging labour market participation while maintaining strong safety nets for those out of work is challenging but essential if we are to reach the national consistent poverty target of 2 per cent.”
Joe O’Brien, T.D., Minister of State with responsibility for Social Inclusion in the Department of Social Protection, said the study was an "important contribution to inform policymaking in this area as it examines which means are most effective in reducing poverty.”