Income inequality rises as private sector wages down

image Constantin Gurdgiev breaks down the latest CSO earning figures which show significant falls in private sector earnings down 6.8% between Q2 2008 and Q2 2009, along with falls in earnings in some public sector sub-sectors (education) and in the semi-states. Earnings in some private sector sub-sectors actually rose slightly, particularly at managerial level, but the average is down significantly.

Earlier CSO reports had failed to show significant private sector drops which had led some to claim they weren’t occurring. The statistics provided by the CSO suffer from ‘Survivorship bias’ in that they take no account of loss of earnings due to being made redundant. Redundancy will impact some sectors much more than others, with the private sector as a whole having overwhelmingly borne the brunt thus far..

These figures pertain to the Republic of Ireland.