It’s a myth ... jobless not better off on dole: ESRI
Published 13/10/2011 | 09:38
THE ESRI today poured cold water on the wide-spread belief that people can earn more by being on social welfare than by taking a job.
It claimed that ‘’selected, non-typical examples of social welfare payments’’ have created the mistaken impression that unemployed people are better off on the dole.
But according to the economic think tank, only ‘’about 3pc’’ of the unemployed would have a lower income if they took a job.
Using the Institute's tax-benefits model – based on a a nationally representative sample of real people rather than selected examples – the ESRI says eight out of 10 unemployed people would increase their incomes by 50pc if they took a job.
The ESRI's model looks at the welfare entitlements and tax liabilities of each household, based on the CSO survey on income and living conditions.
It took potential entitlements of unemployed people to rent and mortgage supplements into account.
And it found that only 13pc those on jobseekers benefit or assistance get these payments.