• The impact of flooding disruption on the spatial distribution of commuter's income

      Kilgarriff, Paul; McDermott, Thomas K.J.; Vega, Amaya; Morrissey, Karyn; O'Donoghue, Cathal; Environmental Protection Agency; 2015-CCRP-DS.10 (Taylor & Francis, 11/08/2018)
      Flooding already imposes substantial costs to the economy. Costs are expected to rise in future, both as a result of changing weather patterns due to climate change, but also because of changes in exposure to flood risk resulting from socio-economic trends such as economic growth and urbanisation. Existing cost estimates tend to focus on direct damages, excluding potentially important indirect effects such as disruptions to transport and other essential services. This paper estimates the costs to commuters as a result of travel disruptions caused by a flooding event. Using Galway, Ireland as a case study, the commuting travel times under the status quo and during the period of the floods and estimated additional costs imposed, are simulated for every commuter. Results show those already facing large commuting costs are burdened with extra costs with those in rural areas particularly vulnerable. In areas badly affected, extra costs amount to 39% of earnings (during the period of disruption), while those on lower incomes suffer proportionately greater losses. Commuting is found to have a regressive impact on the income distribution, increasing the Gini coefficient from 0.32 to 0.38.
    • Using the EU-SILC to model the impact of the economic crisis on inequality

      O'Donoghue, Cathal; Loughrey, Jason; Morrissey, Karyn (Springer Open, 23/12/2013)
      In this paper we attempted to chart the impact of the early part of Ireland’s economic crisis from 2008–2009 on the distribution of income. In order to decompose the impact of changes in different income components, we utilised a microsimulation methodology and the EU-SILC User Database. This simulation based methodology involved the disaggregation of the 6 main benefit variables in the EU-SILC into 17 variables for our tax-benefit model. Validating, our results were positive, giving us confidence in our methodology. We utilised the framework to model changes in the level of income inequality from the period just before the crisis in 2004 to the depth of the worst year of the crisis in 2009. In terms of the impact of the economic crisis, we found that income inequality fell in the early part of the crisis modelled in this paper. Much of this change was due to rising inequality of market incomes, (even when discounting unemployment). This was due to the differential effect of the downturn on different sectors where some sectors such as the construction and public sectors were significantly hit, while the international traded sectors have been relatively immune from the downturn and have seen continued growth. The impact of the tax-benefit system has been to mitigate this upward pressure, with a gradual rise in the redistributive effect of the tax-benefit system driven by an increase in demand on the benefits side and increased progressivity on the tax side. Jel codes H22, H55, C15