Self-employed people outside of the agricultural sector and those on middle and lower incomes bore the brunt of the recession, according to a study by three prominent academics.
The research, presented at the Irish Economy Conference organised by the ESRI, UCD, the Geary Institute, and the Universities of Limerick and Stirling, partly concurs with the “middle-class squeeze” thesis, which suggests those in the middle suffered the greatest contraction in wealth as a result of the downturn.
However, it dilutes the theory somewhat by showing those on incomes just above the bottom rung, which would not normally be afforded the dubious distinction of being middle class, were equally affected.
The study, conducted by the ESRI's Helen Russell and Bertrand Maître in conjunction with UCD academic Christopher Whelan, assessed which income groups and social classes suffered the greatest level of economic strain as a result of the recession.
The report’s findings overwhelmingly suggest the greatest “squeeze” was among lower-middle income and precarious income groups and the non-agricultural self-employed.
Prof Russell said the big increase in economic strain experienced by the self-employed during the recession was likely down to increased debt levels outside the household.
