The increase in the Irish Minimum Wage from €8.65 to €9.15 per hour in 2016 reduced wage inequality between high and low earners, according to a study by the Economic and Social Research Institute.
This 6% pay rise narrowed the wage gap between the top 10% and the bottom 10% of earners by 8%. Moreover, the number of people earning the minimum wage, or below, fell by 40%.
The increase in the minimum wage also had a spillover effect on the earnings of workers paid up to €11.50 an hour, or the 25% lowest paid of the Irish workforce.
Overall gross household incomes, however, were not strongly impacted, as minimum wage earners are rarely the main earners in Irish households.