Upward Nominal Wage Rigidity: Extensions to Wage Agreements

In Portugal, as in many other countries in continental Europe, the collective wage agreements between trade unions and employer associations are systematically extended to non-subscriber workers and employers. Since these agreements establish wage floors for most job titles, their frequent extension is equivalent to setting a wide range of compulsory minimum wages, which are regularly… Continue reading Upward Nominal Wage Rigidity: Extensions to Wage Agreements

Boom, Slump, Sudden stops, Recovery, and Policy Options. Portugal and the Euro

Over the past 20 years, Portugal has gone through a boom, a slump, a sudden stop, and now a timid recovery. Unemployment has decreased, but remains high, and output is still far below potential. Competitiveness has improved, but more is needed to keep the current account in check as the economy recovers. Private and public… Continue reading Boom, Slump, Sudden stops, Recovery, and Policy Options. Portugal and the Euro

Earnings Management Dynamics in Portuguese Listed Firms

There are several incentives to engage in earnings management, which managers need to consider. Likewise, there are different ways to drive earnings and cash flows in a certain direction.  Given the complex context in which firms operate, earnings management may be seen has a continuous and iterative process characterized by a mixture of incentives and… Continue reading Earnings Management Dynamics in Portuguese Listed Firms

Call for Papers: Economic Policy in Portugal: Competition, Innovation, and Competitiveness and Internationalisation

The Portuguese Economic Journal is launching a call for papers for a special issue on Economic Policy in Portugal: Competition, Innovation, and Competitiveness and Internationalisation. Submissions are welcome from 16 to 30 September 2017. Papers accepted for publication will be awarded a Eur. 3,000 prize sponsored by Gabinete de Estratégia e Estudos of the Portuguese… Continue reading Call for Papers: Economic Policy in Portugal: Competition, Innovation, and Competitiveness and Internationalisation

The Impact of Collective Labor Bargaining Extensions

The recent crises raised a number of questions about the role of structural reforms in promoting economic growth. One area that has received greater attention is collective bargaining: the interactions between firms and employees in setting of pay and many other working conditions can be highly relevant promoting micro and macro flexibility, increasing resilience during… Continue reading The Impact of Collective Labor Bargaining Extensions

Maximum Duration of Fixed-Term Labor Contracts in Recessions

Policy makers and academics put great effort in understanding and minimising the negative employment effects of business cycles. This paper evaluates one policy option in this regard: greater flexibility in the maximum duration of fixed term contracts during recessions. Its simple rationale is that, when faced with an uncertain outlook (and restrictive permanent contracts), firms… Continue reading Maximum Duration of Fixed-Term Labor Contracts in Recessions

From Convergece to Divergence: Portuguese Demography and Economic Growth, 1500-1850

When did Portugal’s economy diverge from the European core? This paper constructs the first time-series for Portugal’s per capita GDP for 1500-1850, drawing on a new and extensive database. Starting around 1550 there was a highly persistent upward trend on per capita income, which accelerated after 1700 and peaked 50 years later. At that point,… Continue reading From Convergece to Divergence: Portuguese Demography and Economic Growth, 1500-1850