TY - JOUR
T1 - Wages, productivity and efficiency
T2 - an empirical study for the Portuguese manufacturing sector
AU - Modesto, Leonor
AU - Monteiro, Manuel Leite
PY - 1993/1/1
Y1 - 1993/1/1
N2 - In this paper we provide an axplanation for the relative flexibility of the Portuguese labour market. We find that in Portugal, contrary to what happens in the rest of Europe, unemployment exerts a significant downward pressure on manufacturing wages. We obtain a long-run Phillips curve where the labour share (adjusted for the minimum wage) is found to respond significantly to the slack in the labour market. This accounts for the low level of unemployment and small unemployment persistence registered in Portugal, when compared with other countries. The theoretical framework used is a bargaining model, where unions and firms try to optimize their goals.
AB - In this paper we provide an axplanation for the relative flexibility of the Portuguese labour market. We find that in Portugal, contrary to what happens in the rest of Europe, unemployment exerts a significant downward pressure on manufacturing wages. We obtain a long-run Phillips curve where the labour share (adjusted for the minimum wage) is found to respond significantly to the slack in the labour market. This accounts for the low level of unemployment and small unemployment persistence registered in Portugal, when compared with other countries. The theoretical framework used is a bargaining model, where unions and firms try to optimize their goals.
U2 - 10.34632/economia.1993.17060
DO - 10.34632/economia.1993.17060
M3 - Article
SN - 0870-3531
VL - 17
SP - 1
EP - 25
JO - Economia
JF - Economia
IS - 1
ER -