This paper presents evidence on the effectiveness of the Rural Renewal Tax Scheme introduced by the Irish Government in 1998. The rationale for the scheme puts the emphasis on new economic activity and economic growth in the designated area. Thus, it is legitimate to look for positive employment...

The high growth rates experienced in Ireland over the last 10 years has resulted in a tightening of the labour market which is reflected in the number of unfilled vacancies reported by firms. At the same time wage inequality has increased leading to greater demands being placed on the government...