A report from the Economic and Social Research Institute has warned the Irish economy is losing out by failing to fully utilise the education and skills of migrant workers.
The latest quarterly report from the ESRI also suggests that those buying second homes for investment or holiday purposes should pay a special property tax.
The economic think tank is predicting growth in the economy at between 5.5-6% for the next two years, while inflation will remain close to 2%.
Unemployment will continue to drop, from a current level of 4.5% to 4.3%, the report adds.
But productivity growth in the economy has slowed substantially from the boom years of the 1990s and this latest report shows Ireland is failing to fully utilise the skills of migrant workers.
Four out of every ten migrant workers have third level education or a specialised trade, but many are forced to take jobs where their skills are effectively wasted.
This ESRI report also examines the increasing house prices in the Borders, Midlands and West Regions.
One in every five new homes are holiday homes or second homes bought by people as investments, and then left vacant for much of the year - while many other people can not afford to buy a home.
The Institute is suggesting the introduction of a property tax on dwellings used as holiday homes could help ease house prices all round.
