COVID-19 and the Irish welfare system

Abstract

The mission of the Economic and Social Research Institute is to advance evidencebased policymaking that supports economic sustainability and social progress in Ireland. ESRI researchers apply the highest standards of academic excellence to challenges facing policymakers, focusing on 12 areas of critical importance to 21st Century Ireland.The Institute was founded in 1960 by a group of senior civil servants led by Dr T.K. Whitaker, who identified the need for independent and in-depth research analysis to provide a robust evidence base for policymaking in Ireland.Since then, the Institute has remained committed to independent research and its work is free of any expressed ideology or political position. The Institute publishes all research reaching the appropriate academic standard, irrespective of its findings or who funds the research.The quality of its research output is guaranteed by a rigorous peer review process. ESRI researchers are experts in their fields and are committed to producing work that meets the highest academic standards and practices.The work of the Institute is disseminated widely in books, journal articles and reports. ESRI publications are available to download, free of charge, from its website. Additionally, ESRI staff communicate research findings at regular conferences and seminars.The ESRI is a company limited by guarantee, answerable to its members and governed by a Council, comprising 14 members who represent a cross-section of ESRI members from academia, civil services, state agencies, businesses and civil society. The Institute receives an annual grant-in-aid from the Department of Public Expenditure and Reform to support the scientific and public interest elements of the Institute's activities; the grant accounted for an average of 30 per cent of the Institute's income over the lifetime of the last Research Strategy. The remaining funding comes from research programmes supported by government departments and agencies, public bodies and competitive research programmes.

Earnings-related benefits in Ireland: rationale, costs and work incentives

“…We use SWITCH -the ESRI's tax and benefit microsimulation model, described comprehensively in Keane et al (2022) -to assess how each hypothetical reform scenario would affect estimates of financial work incentives faced by households. 20 SWITCH allows us to calculate households' social welfare entitlements, tax liabilities and net incomes, both in terms of their actual circumstances as well as a set of hypothetical scenarios, with different employment statuses captured in the differences between our hypothetical scenarios and the baseline.…”

“…This experience has given rise to a discussion about the adequacy and future of the social welfare system in Ireland (e.g. NESC, 2020; Keane et al, 2021), with some prominent proposals for a strengthening of the link between earnings and social welfare payments (e.g. ICTU, 2021;MacFlynn, 2021).…”

“…A number of reasons could explain this. For example, young individuals could have low financial work incentives at the beginning of their career but remain in employment as they expect their situation to change in the future (Keane et al, 2021). Additionally, non-financial reasons, such as social interaction or status linked with a particular job, can incentivise individuals to stay in employment.…”

“…This means the results are best interpreted as showing the initial 'first round' effects of the reforms considered. For more information about SWITCH, see Keane et al (2022).…”

The Effect of Pandemic-Related Economic Disruption on Young Adolescents in Ireland

“…In Ireland, the Pandemic Unemployment Payment (PUP) was introduced on 13 March 2020 for those who lost their jobs as a result of the pandemic, initially at a rate of €203 per week (comparable with the maximum personal rate of existing unemployment payments). The PUP was raised to €350 per week from 24 March, thus providing those affected with relatively high levels of income replacement [ 21 , 22 ]. It was paid at a flat rate of €350 per week for a number of months before the rate of payment was tied more closely to previous earnings.…”