Minimum wage a ‘blunt tool’ in tackling poverty

Gaps between women and men, and young and older workers on the minimum wage have substantially narrowed, but there are still inexplicably more non-nationals than Irish workers in receipt of the lowest wages, according to the latest research.

The Economic and Social Research Institute study concludes that the minimum wage is a “blunt instrument” if the Government intends to use increases to tackle household poverty. It says there is little evidence to support the view that increases automatically reduce employment by putting jobs under threat.

Research professor Seamus McGuinness said the minimum wage “plays an important role in society” but that other policies may be needed to reduce poverty caused by jobless households.