The long-term effects of being hired right after the Carnation Revolution

Abstract

Using the Carnation Revolution, this thesis tests if the impact of being hired in poor labour market conditions on lifetime wages is in fact negative, and how this effect differs for workers with a higher or a lower education level. For this, it uses Portuguese data from 1986 until 2017, using the worker’s date of admission to control for selection. Controlling for individual characteristics and sector of activity, it estimates that workers hired right after the Revolution earned 3.6 percent more throughout their life than those hired two years before. Moreover, workers with a higher education level were not impacted as much as those with a lower education level. Overall, the results obtained do not support a negative impact of poor labour conditions at the time of hiring on lifetime wages. However, when only considering data until workers leave the firm, our estimates show that workers with a higher education exhibit a negative impact on wages.

Date of Award	29 Jan 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Raposo (Supervisor)