Ireland's tax system reduces income inequality - ESRI

A new report from the ESRI says Ireland's tax system does more than any other EU country to reduce income inequality.

The think-tank says despite gross household income being one of the most unequal in Europe - it is offset by the current tax model.

It is part of a study looking at how income inequality has changed in the past 30 years.

Dr Barra Roantree, economist with the ESRI, and explains how they came to the findings.

"To look at the incomes of households in each different country and then we look at what each household has to take home after tax and benefit income," said Dr Roantree.

"Then we compare them using typical measures of income inequality.

"What that shows is that Ireland is mid-table on the basis of disposable take-home income despite having very high levels of income inequality before tax and benefits."