THOUSANDS OF FAMILIES would be better off on the dole rather than working, according to an ESRI study.
The working paper found that the cost of working in Ireland is around €140 per week – or €7000 per year – for an employed person without children, increasing to €9000 per year for a family with children.
An estimated 15 per cent of people without children and 44 per cent of people with children would be better off not working given the high costs involved. The figure includes the costs of transport, childcare, lunches and appropriate clothing for work.
Expensive childcare is a major disincentive to work particularly for women. The study noted that Ireland has very expensive childcare, often costing around 30 per cent of a monthly wage.
People buying lunches at work and takeaway food at home in evening if they have no time or energy to cook can also take up a substantial amount of money.
The work suggests that work-related expenses are so high that jobs don’t necessarily act as an incentive to work.
Latest figures show that 14.8 per cent of the population – roughly 309,000 people – are currently out of work in Ireland.
The research in The Costs of Working in Ireland used the Household Budget Survey which looked at all private household in Ireland to analyse the data.
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