Cross-border Working on the Island of Ireland: Trends, Drivers and Policy Challenges

Abstract

This study examines the extent of cross-border working on the island of Ireland, highlighting associated challenges and opportunities. Our estimates indicate that the total number of cross-border workers increased from 12,740 in 2011 to between 17,827 and 19,282 in 2021, representing a growth rate of between 40 and 51 per cent. This increase was predominately driven by a rise in individuals travelling from Northern Ireland to the Republic of Ireland for work, likely due to substantially higher wages in the Republic of Ireland. Other factors influencing cross-border worker flows include better career progression opportunities in the Republic of Ireland, access to the NHS for those going from the Republic to Northern Ireland and proximity to the border for all cross-border workers. Despite these opportunities, several barriers persist. Common barriers and challenges include exchange rate risk, tax return requirements, accessing social welfare benefits, commuting costs and difficulties obtaining financial products such as mortgages. Additionally, workers travelling from the Republic to Northern Ireland reported limitations in their ability to work from home due to pre-existing tax rules. From a policy perspective, the research highlights the need to address barriers to foster a more integrated all-island labour market that can be addressed by policy changes and / or co-ordination in both regions. This is particularly pressing given the current tight labour markets in both Northern Ireland and the Republic of Ireland.