Female Labour supply and Income Inequality in Ireland

Abstract

Over the last 10-15 years female labour force participation rates have increased substantially in Ireland. At the same time there has been a large increase in wage inequality but a decline in total household income inequality. In this paper we examine the relationship between the trends in female labour force participation, wage inequality and household income inequality in order to develop a better understanding of the processes governing inequality in Ireland. Our findings suggest that despite an increased correlation in the earnings of spouses the recent increases in female labour force participation and female wage rates account for between 20% and 50% of the recent fall in income inequality in Ireland. The remainder of the reduction is attributed to factors not directly related to wives' earnings.female labour supply; family income inequality