In 2016 it would have been difficult to imagine that Ireland and Spain once shared similar economic contexts. While in 2007 they were both experiencing similar macroeconomic conditions, and...Show moreIn 2016 it would have been difficult to imagine that Ireland and Spain once shared similar economic contexts. While in 2007 they were both experiencing similar macroeconomic conditions, and underwent similar processes in dealing with the crisis, nine years later the Irish economy had managed to regain its pre-crisis standards, whereas Spain’s continued to lag behind. Particularly telling of these developments are poverty trends, with Ireland presenting an overall decrease in its At-Risk-of-Poverty or Social Exclusion (AROPE) figures over 2007 and 2016, and Spain being unable to do so. Consequently, given their similarities prior to the Great Recession, the question of “what explains the diverging poverty trends between Ireland and Spain between 2007 and 2016?” arises. Turning to the academic and theoretical literature, the paper identifies four variables which could explain these outcomes: economic growth and income inequalities; (un)employment levels and conditions; welfare state effectiveness; and political inequality. These variables were assessed with reference to Eurostat and OECD data, with the analysis being complemented by NGO reports and government publications. Overall, findings indicate that three principal factors can explain these diverging poverty trends: I) the fact that income inequalities were widespread in Spain, even during periods of growth, while they were relatively stable in Ireland; II) Spain’s inability to avoid an increase in rising labor precariousness, and; III) the effectiveness of Ireland’s welfare state in reducing poverty levels. The fourth variable under investigation, the role of political inequalities, provided inconclusive results.Show less
