Ireland’s exceptionally deep economic and fiscal crisis had an immediate and profound impact on employment and household incomes. The percentage of children below a 2008 relative income threshold increased in line with prices, rose from 18 per cent to 28 per cent, and by 2012 32 per cent of children were in households reporting severe material deprivation. The impact of the recession was significantly buffered by the social security system providing an income floor for those who lost their jobs, despite cuts in some social transfers, and the redistributive impact of the tax and transfer system increased markedly. Overall the Irish welfare state proved reasonably robust in responding to the crisis, bringing about rapid fiscal adjustment, although public expenditure cuts on key services, high levels of debt, failure to generate adequate affordable housing, and the scarring effects of unemployment mean it will have a lasting impact on families.
Immigrants, social transfers for education, and spatial interactions
