Measuring poverty in ireland - an assessment of recent studies

Abstract

The economic debate preceding the Irish Budget in 1989 was dominated by claims that one-third of the population lives in poverty. The Combat Poverty Agency (CPA)/ESRI study (September, 1988) was cited in support of the claims. This article examines the issues involved in the measurement of poverty such as absolute and relative poverty, the use of disposable or final income, the inclusion of non-cash benefits, adult equivalence scales, understatement of income in surveys, failure to satisfy means tests, inequality in major consumption items and the treatment of assets. The CPA/ESRI results are compared to those of the NESC and CSO which indicate a less critical position in regard to poverty and inequality. Ireland's social welfare record is briefly reviewed.