The Republic of Ireland has higher wages, stronger economic growth and better living standards than Northern Ireland, according to a new study by the Economic and Social Research Institute.
The report was commissioned by the Shared Island Unit in the Department of the Taoiseach.
It found the population of the Republic was growing faster than in Northern Ireland, largely driven by stronger net migration in recent years.
The report said household disposable income in the south was 18.3% higher than it was in the north and the gap had widened over time.
It also said wages were higher in the Republic with hourly earnings 36% above those in Northern Ireland.
Modified Gross National Income, a measure of the economy which strips out the contribution of multinationals, was 57% higher in the Republic compared to Gross Domestic Product per capita in the North which illustrates that growth is much stronger in the south.
Britain remains Northern Ireland’s largest trading partner but business between the two has declined since 2015 while the North’s trade with the Republic has increased.
On a per capita basis, residents in Northern Ireland pay lower rates of income tax of €2,980, compared to €6,725 in the Republic.
Spending on health as a percentage of government expenditure is higher in the south at 26.3% compared to 17.3% in the Northern Ireland.
The North has a higher share of public sector employment at 29.2% compared to 25.3% in the Republic.
However, Northern Ireland is more productive in the sectors of construction, agriculture, forestry, and fishing.
But labour productivity is 2.5 times higher in the south.
Across all age groups education enrolment was higher in the Republic.
The ESRI report found that 30% of young people aged between 15 and 19 in Northern Ireland were not enrolled in education, and that this rate worsened between 2018 and 2022, which was “extremely alarming”.
It said: “It is not surprising that early school leaving remains a particular problem in NI.”
The report found life expectancy was two years longer in the Republic.
The report’s author, Dr Adele Bergin, said there are widening gaps in all common measures of living standards between Northern Ireland and the Republic.
She said lower levels of productivity in Northern Ireland are a huge part of what is driving these gaps.
“We cover a broad range of dimensions, everything from demographics to labour market trends, living standards, economic structures and overall well-being,” she said.
“And we find widening gaps in all kinds of commonly used measures of living standards,” she added, and these tend to favour the Republic.
Dr Bergin said that it is likely Brexit has played a role in the fact that trade has declined somewhat between the North and Britain, while trade with the Republic has increased.
Article Source – Stronger economic growth in ROI compared to NI – study – RTE
