Minimum wage rises don’t cost jobs – ESRI
A study by the Economic and Social Research Institute (ESRI) has found that more than half of those who are on the minimum wage in Ireland work in the retail, accommodation and food sectors.
The report’s author, Dr Paul Redmond, says low-paid workers may be disproportionately affected by job losses in these areas, which have been severely disrupted by the COVID-19 pandemic.
Those who lost their job can claim the Pandemic Unemployment Payment, consisting of a flat rate of €350 per week.
Pandemic payment is higher
The ESRI says minimum wage employees, on average, work relatively few hours, meaning that the current pandemic payment is higher than the gross weekly wage of most minimum wage workers.
The research finds that increases in Ireland’s minimum wage have not led to job losses among minimum wage workers, though they have led to some reductions in hours worked.
Wage inequality
The institute also says the 2016 rise in the minimum wage led to reductions in wage inequality, adding that the measure has been shown to be particularly important in keeping wage inequality low during a recession.
Dr Redmond says politicians and the Low Pay Commission will have to consider these issues over the coming months when they look at whether the minimum wage should change.
Around 8% of employees are on the minimum wage in Ireland. Compared with all employees, minimum wage employees are more likely to be women, work part-time and be in the 15 to 24 years age bracket, according to the ESRI study.