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Dublin: 19 °C Wednesday 19 June, 2013

94 per cent of workers better off employed than on the dole, says ERSI

The report contradicts a working paper from the summer that said two-fifths of families would be better off on the dole.

Building construction workers in Dublin.
Building construction workers in Dublin.
Image: Eamonn Farrell/Photocall Ireland

ONLY A FEW families would be better off on the dole than working, according to a new paper from the Economic and Social Research Institute, contradicting previous findings from the government funded think tank.

94 per cent of people are better off in work, it said, while 86 per cent of those with children would earn more in a job.

“Previous analyses do not accurately represent Ireland’s position, largely because the examples chosen included rent and mortgage supplement, which is given to only a small proportion of unemployed people” said the ESRI. “Excluding this supplement gives a more accurate picture and shows that Ireland is similar to many EU countries.”

The findings are at odds with suggestions by the International Monetary Fund that some welfare rates are acting as a disincentive to work. They criticise the OECD and the IMF for misinterpreting data on Irish social welfare rates, and said that Irish welfare rates were line with those in the rest of Europe.

Just 14 per cent of the population with families would be better off in the dole, it said, mainly because of rent supplements or other state supports to pay a mortgage.

The paper also rejected claims that welfare rates are better in Ireland than in the UK, as half of British recipients also receive additional benefits to cover the cost of housing. In Ireland, only 12 per cent receive housing benefit on top of job less benefit.

Think-tank says Irish economy is ‘bouncing along the bottom’>

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Comments (61 Comments)

  • Ahhh the good old rock ‘n role! The money is crap but the hours are bloody fantastic!!!

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  • “ONLY A FEW families would be better off on the dole than working” the system needed to be changed during the boomtime so that No families were better off on the dole when jobs were plentiful.

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  • It’s like the Daily Mail, every new report contradicts the previous one.

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  • Resel 27/09/12 #

    Everyone is better off working than being on the dole. Maybe not always financially but in every other way.

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  • most jobs in Ireland pay peanuts now and if you are qualified you have to emigrate, after all the taxes, usc the fuel you burn to drive to work, car tax and the likes some people are better off on the dole, until they can afford to emigrate, if you are on minimum wage and you spend 70 quid getting to work and back every week on fuel you spend more than one full days wages trying to afford getting there, hilarious isn’t it

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    • The sad truth is that, in most of Europe at least, the same jobs will pay a lower wage or salary. You may be better off financially if you based yourself in another country, not because of higher earning potential, it would be lower, but because the cost of living would be significantly lower. Lowering cost of living would have far stronger long-term benefits for Ireland than increasing wages, which would, for most companies based here, be unsustainable.

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  • ESRI? Haha, yeah whatever.

    Any real reports available?

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  • Whacks of them being told to release that

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  • “Just 14 per cent of the population with families would be better off in the dole”
    What the heck, and this is their contradictory report? That should be nobody! Nobody should ever ever be better off on the dole.

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  • JayK 27/09/12 #

    “…the examples chosen included rent and mortgage supplement, which is given to only a small proportion of unemployed people.”

    Like, about 6% of people?

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  • What a bunch of chumps. The ERSI criticise the OECD and the IMF for misinterpreting data on Irish social welfare rates, in a report which contradicts their previous report where they now claim they misinterpreted data. :)

    IMHO the current ESRI report is a load of cobblers too. Reality on the street, means thousands of people supplement their income on the black economy with nixers. The “94% of people are better off” is well wide of the mark!

    For those that do go back to work their incomes are marginally better.
    ( Minimum wage job) – (Dole + benefits) = circa €100 or €200. i.e €2.80 – €5.70 per hour.

    Forgive the back of the envelope type sums. I’ve no time to do in depth calculations. Let the ESRI do that. They get paid well enough.

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    • Yeah marginally is the key worked. They could be better off financially by say 20e per week, and I for one would not go back to work just to gain an extra 20e.. Time spent at home with the family is worth way more than 20e.
      Also going back to work could involve working shift or night work which can cause physical and mental effects all of which are not worth the marginal financial gains. I bet the human side is not taken into account with reports like this and just bottom line figures are all that count. People are not just number and calculations on paper

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    • Ryan'O 27/09/12 #

      I wonder did child care cost get factored into their doctored equations!!

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    • Simon if we all took your attitude who would pay the taxes that support your dole. I would love to stay at home and spend time with my family and no money can equate to that but I choose to work to set a good example. The benefits make it too easy to stay at home. Personally I think if your able to work and choosing not to even if its only for 20e extra a week, then your a pathetic little man

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  • They were right the first time.

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  • Government funded think-thank in findings to flatter Government shocker?!

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  • All the lads I know on the dole are doing nixors most days too and are far better off than 94% of the population…
    These reports are useless and never even nearly accurate.

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  • Does this study factor in work-related costs such as childcare, transport, work clothing, etc.? It’s very hard for a lot of parents to make the leap from benefits to work because these costs can cancel out any financial advantage associated with the job.

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    • Unfortunately The Journal.ie is not very good at reporting the full story. You’ll have to go to other news outlets to get that information but to answer your question yes it did include childcare, welfare transport ect

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  • You got to the love the picture ! ‘Building construction workers in Dublin’
    Look more like a bunch of council workers – 7 guys all looking at the ground !
    All they need is a few shovels to breast feed !

    Chances are, half of them are on the dole also !

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  • Even if these figures are correct it means that 6% of workers are better off on the dole.

    That’s far too much. The dole should not be a valid career.

    The timing of this report is interesting. Is there a reduction in the dole payments coming in the budget I wonder.

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  • The question is if the dole is too high, or the cost of working too high.
    It’s easy to point your finger at those in receivership, but having 3 kids myself: €75 a day it costs me to have my kids in childcare. That’s 375 each week.

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    • I don’t think it’s so black-and-white. I’m absolutely convinced that in some cases, social welfare payments ( including subsidies and allowances ) are too high. But that’s not a basis for blanket reductions, rather it’s grounds for a reform of the allocation procedure for allowances. Wages are not too low in Ireland, they’re higher than the their equivalents in most other EZ countries. The cost of living may be too high in Ireland.

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    • I agree Nikolas, it certainly isn’t.
      I think the cost of living is way too high in Ireland.
      My wife and I calculated once we need a minimum family income of 4500 a month to fulfil our basic needs and about 5500 or more to have a comfortable life. When you look at other countries as the Netherlands or France 4500 would be very generous as in general things are a lot cheaper.

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  • Better off financially off the dole…… but by how much? If it’s a fiver a week it’s hardly worth driving to work! Need some better reporting of the analysis from the ESRI than that!

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    • Not the attitude to have man

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    • Not the attitude we might be WANTED to have, true enough, but Mark is right about the cost of living, it’s very high. That fact alone means there’s little reward for the low paid or no paid. People need to earn a sufficient margin above mere subsistence to be able to spend and boost the economy. Either that, or look to another economic model to replace capitalism.

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  • I don’t see how this is propaganda by the government. If they were planning on cutting the dole surely they would prefer to be able to point to a report showing that a lot more people are better off on the dole than working and thus allowing them to better justify a cut in social welfare payments in the next budget. Please explain why I’m wrong?

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  • Everyone is entitled to their opinion, but this trend of non-specialists criticising specialists worries me. I think it’s a huge step backward. If I go to a doctor, I want that doctor to have the proper academic qualifications and I’ll be more likely to trust the doctor’s advice than a random person of the street who says that

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    • they’ve a friend of a friend who said that eating raw onions cures cancer. Anecdotal evidence, received wisdom and pseudo-science eventually lead to people drilling holes in their heads to let the bad feelings out, and a doctor of economics is far more likely to be correct then someone who has a random wavelength after scanning the financial pages. Just because you don’t like what someone says, that doesn’t mean it’s incorrect. Please remember also that this was following on from an incident at the ESRI a staff member was let go because of “personal differences and improper research procedures. The original working paper was proven to be flawed and its results inaccurate.

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    • @Nikolas Koehler, do you have a blog or anything? I’m always very impressed with your level headed comments and will always read and agree with them

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    • @Nikolas, do you have a blog or anything? I’m always very impressed with your level headed comments and will always read and agree with them

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    • @ Cholly – thank you very much. No, I don’t have a blog. I only started commenting here because a few months ago my son have me a tablet-computer for my birthday. It’s very addictive. I used to be amazed at all the comments here. Where do people find the time? But now I’m doing the same, checking in throughout the day. The onscreen keyboard drives me to distraction though, that’s my excuse for all the typing mistakes.

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  • Ha ha ha bullshit!

    What was that two months ago that said most people are better off on the dole than working but got pulled back 5 minutes later haha.

    No wonder you,d be better off on the dole when your working your getting taxed for everything possible so basically you just come out with probably just over what you would get on the dole.

    The people running this country haven’t got the first clue as to what they are doing.

    http://www.change.org/petitions/supporting-the-irish-nation-step-down-from-government

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    • The initial document was not a report, it was a working paper which was released to have it’s methodology, not it’s results challenged. The working paper’s was found to be flawed, the data on which it was based was shown to be out of date and incomplete, and so the initial results were proven to be invalid. The working paper was brought to the public’s attention by a disgruntled ex-staff member who wanted to create difficulties for the ESRI. The political manipulation angle makes for a good story but, at least in this case, simply isn’t true.

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    • now, now, Nikolas, some fact checking would suit you

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    • 94 per cent of workers better off employed than on the dole, says ERSI???

      but well all know 98% of statistics we read from the news is bullshit

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    • Hello Richard, good to hear from you. I’m quite aware of the facts of your unofficial invitation to leave the ESRI, and, while this is by no means the correct forum for hacking that issue out once again, it is fair to say that your working paper was not the reason for the above invitation, it was rather a minor element made major purely through an escalation in the tensions surrounding that time. But even you have to acknowledge the differences between a working paper and a published report, and also that these differences are not usually clear in the general media. You had an axe to grind, and you ground it, but please don’t further blur the differences between symptom and cause.

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    • Nikolas:
      I assume that “Nikolas Koehler” is a pseudonym.

      You claim to be privy to information that is confidential under Irish law. That is bluff. You’re wrong.

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    • @ Richard – of course Nikolas Koehler is an alias. Quite simply, I would have knowledge about the case if I had been involved in the case. But I’m not going into details here because, firstly, this not not the proper forum for such details, and secondly, I have no proof that you really are Richard Tol. That’s the nature of the Internet. If you would like to discuss this in via more private and secure means, then I would be very happy to do so.

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  • Young families with lots of welfare support are way better off than working public servants.Fact.And it is very unfair.

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  • Some logic you people have.

    Three months ago right-wing economists, commentators, pub-ranters and Journal.ie posters happily embraced the views of eccentric economist Richard Tol, formerly of the ESRI, when he suggested that 44% of working families would be better off financially on social welfare. In their view here was proof that recipients of social welfare were living a fine life while the rest, particularly our “wealth-creators”, toiled to stump up the funds for the happy lifestyle of these “scroungers” and “layabouts”.

    Unsurprisingly, the Indo/Sindo machine took the lead:

    ESRI dole report: Joan Burton fails to find figures to contradict research – National News – Independent.ie

    Newstalk’s Marc Coleman, waded in on the Sindo’s pages:

    Marc Coleman: The ESRI’s impartiality must now be questioned – Analysis, Opinion – Independent.ie

    True to form, Coleman, a former member of FG and the economics editor of the Irish Times during the calamity of 2005-2007, went into bat for his wealthy employers, taking part in the almost entirely successful transfer of blame for our woes from the shoulders of our business elite to the ‘little people’ of this state.

    The ESRI now appears to have blown Tol’s ‘research’ out of the water:

    Just one in eight better off on dole, ESRI finds – The Irish Times – Thu, Sep 27, 2012

    If you want to see Dole rate cuts then Id imagine you would be happy to have your own wages cut for the benefit of the economy?

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  • Doesn’t matter really what they think as it doesn’t change anything.

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  • Lots of people who cannot find work would welcome an opportunity to engage in some useful activity. The govt is cutting funding to community employment schemes, which is short sighted of them. With the number of candidates available there would be scope to improve many facilities for the benefit of the communities and the workforce on the scheme. And if there were places on CE schemes it would flush out a few skivers, when they found that one was available for them!

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  • Oh yeah,here we go all of a sudden, just before the budget they change there tune…I wouldnt mind if it was a more detailed report, as it just sounds like it comes from the minds of the same government spinners.. very vague
    and amatuerish….!

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    • The ESRI are nothing do do with the Government. They are not civil servants. A better way of describing them is as a university without any students and with only an economics and sociology department. They were not even set up by the Government if the time. They were founded and initially funded by an American business magnate.

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    • @ Will – but I’d imagine that you haven’t actually read the report, only a general news article about the report. What what are you criticising as amateur and vague?

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  • whoever dislikes my last comment must believe everything they read in the papers as fact, idiots

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