Income levels, whether for individuals or households, are far from perfect measures of progress and well-being. However, they offer one insight into the experience of recent years for households across the Republic. In particular, trends in disposable income (income after taxes and welfare payments) provide some understanding of what households have left in their pockets to spend each week/month or across the year.
The skewed nature of Ireland’s income distribution was highlighted in a recent NERI Research inBrief which I published in February. It is available here.
In the latest edition of the NERI’s Quarterly Economic Facts, indicator 4.3a (p69-70) highlights the changes to average household disposable income over recent years. The data is from the CSO’s Survey on Income and Living Conditions (SILC).The indicator shows that between the year when incomes peaked, 2008, and 2012 average household incomes decreased from €49,043 to €40,505 (almost 17.4%) reflecting falls in earnings, reduced welfare payments and increases in income taxation levels. Overtime, the average household disposable incomes figure has fallen back towards 2005 levels (2012 = €40,505 and 2005 = €40,497).
The chart presents these income trends at an overall level, and broken down by various household types, classified by the gender and principal economic status of the head of household, and urban/rural location.
Full details in the latest edition of the NERI’s Quarterly Economic Facts.