The Impacts of Structural Changes in the Labor Market: a Comparative Statics Analysis Using Heterogeneous-agent Framework

In this paper we aim at analyzing the impacts on welfare and wealth and consumption distribution across different labor market structural features. In particular, we pursue a steady-state analysis to assess the impacts of unit vacancy costs, unemployment replacement ratio or the job destruction rate, when they are changed in order to promote a given reduction in the unemployment rate. We combine a labor market search and matching framework with unions, based on Mortensen and Pissarides (1994) with a heterogeneous-agent framework close to Imrohoroglu (1989) in a closed economy model. Such approach enables the joint assessment of macroeconomic welfare and inequality together with implications derived from institutional changes in labor market. Moreover, the transition matrix between worker's states is endogenous, fully derived from labor market conditions. Using feasible calibration to the Euro Area, we conclude that different institutional changes to promote unemployment reduction have non-neutral and differentiated effects on welfare and inequality. While changing unit vacancy costs and job destruction can be ranked, changes in the unemployment benefit replacement ration involve a trade-off between gains in welfare and in consumption/income distribution.Labor market institutions, search and matching models, heterogeneous-agent models, welfare and inequality.

Interconnectivity in the European Periphery:: Portuguese Telegraphs as Global Links (1855–1939)

Viele Nationen sahen die Telegraphenverbindungen, insbesondere die Unterseekabel, als strategische Faktoren. Portugals Regierung strebte eine „Modernisierung“ des Landes an, indem es 1854 ein Telegraphennetz aufsetzte. Begrenzte Ressourcen zwangen die portugiesischen Politiker, Techniker und Manager, die Reichweite und Effizienz des Netzes zu optimieren, indem sie Telegraph, Telefon und Radio miteinander verbanden. Portugals geographische Lage machte es zugleich zu einer Peripherie und zu einem Zentrum anderer Peripherien, besonders der Atlantischen Inseln und der afrikanischen Kolonien. Dies bescherte portugiesischen Territorien eine Schlüsselposition im globalen Telegraphennetzwerk und machte es zu einem bedeutenden Faktor von dessen Heraufkunft und Kontrolle zwischen ca. 1860 und 1930. Der vorliegende Artikel konzentriert sich auf die Beziehungen dieser Tatsache zu wechselnden geopolitischen Konstellationen und der nationalen Modernisierungsabsicht

Which Portuguese firms are more innovative? The importance of multinationals and exporters

In this study we test the trade Global Engagement hypothesis in which firms more globally engaged – either multinationals or exporters – are more innovative. The test is applied to 4818 Portuguese enterprises´ data for the period 2002-2004 through the use of the fourth Portuguese Community Innovation Survey. We estimated several Knowledge Production Functions assuming that knowledge outputs result from the combination of some knowledge inputs with the flow of ideas coming from existing stock of knowledge. We found that more internationally exposed firms create more knowledge output, than their domestic counterparts; indeed, more globalized firms use more inputs and have the opportunity to use a larger stock of knowledge. Notwithstand, the observed superiority of more internationally exposed firms is also the result of their globalized nature, not directly connected with knowledge inputs or information flows.Multinational firms, exporting, knowledge-production functions, Portugal

Learning-by-exporting: what we know and what we would like to know

This paper revises the thesis that exporting firms learn to be more innovative and efficient as they have contact with certain information flows from their foreign activity (e.g., from buyers, suppliers or competitors). The paper begins by exploring the connections between two distinct concepts: Self-Selection (of more efficient firms into exports) and Learning-by-Exporting. The study then proceeds with a comparative analysis of the most recent literature and presents common facts and evidence, as well as key issues still open to debate. Learning-by-Exporting should be measured directly using firms´ innovative performance. However, given the lack of suitable data on firms’ innovative activities most studies have followed an indirect approach, using productivity measures. Several methodologies have been employed to estimate Total Factor Productivity and to test the Learning-by-Exporting hypothesis, but so far no final consensus has been reached on the best way to do it.Learning-by-exporting, self selection, total factor productivity

Economic performance and international trade engagement: the case of Portuguese manufacturing firms

By combining economic and financial data for Portuguese manufacturing firms with data of their exports and imports, we uncover some aspects of the relationship between international trade engagement and firms’ performance. In line with recent theoretical and empirical developments in the international trade literature: (i) we testify that Portuguese international trade is highly concentrated, especially on the import side, and both in inter- and intra-sector terms; (ii) we corroborate previous studies and theses according to which two-way traders outperform only importers, only exporters and above all domestic firms; (iii) we find that the greater the diversification of markets and goods (especially with regard to imports) the better the performance achieved by internationalized firms; (iv) we also present evidence that destination markets, for exports, and, origin markets, for imports, are also important in explaining the performance of firms.International trade, Firm performance, Diversification

Which Portuguese Manufacturing Firms Learn by Exporting?

Using a longitudinal database (1996-2003) at the plant level, this paper aims to shed light on the causal nexus between international trade engagement and productivity in Portugal. We analyse in particular the learning-by-exporting hypotheses. In line with recent empirical literature, we apply mainly the Propensity Score Matching and a differences-in-differences estimator. In post-entry years we find a higher growth of labour productivity and total factor productivity for new exporting firms when compared to firms that, although having similar characteristics, have decided not to begin exporting in that year. Moreover, in an attempt to uncover the channels through which the learning effects are driven to new exporters, we applied the same methodology to some sub-samples. We found that learning effects are higher for new exporters that are also importers or start importing at the same time. Other important factors influencing that learning ability are found in firms that export to more developed markets, in those that achieve a certain threshold of export intensity and particularly for those firms that belong to sectors in which Portugal is at a comparative disadvantageExports, Imports, Self-Selection, Learning-by-exporting, Matching

Do Portuguese manufacturing firms self select to exports?

Using a longitudinal database (1996-2003) at the plant level, this paper aims to shed light, on the thesis that most productive domestic firms self select to export markets. Self selection and learning by exporting are two non-mutually exclusive theses that try to explain the high correlation between international trade involvement of firms and their superior performance, relative to domestic firms. In general, we find evidence of a self-selection to exports. However, there is a significant heterogeneity according to the destination of sales, to firms’ import status before exporting and to the specificities of sectors firms’ belong to.Exports, Imports, Self selection

Farmers' Demand for Information about Agribusiness

This study is focused on the habits of the Brazilian farmers that access the Internet for searching information to their economical activities. The main goal is to understand how come those agents of the agribusiness use the formal and informal (personal contact) means of communication, as well as the functions that each of those means accomplish to this public. In other words, it intends to identify the channels of communication of major importance to farmers (used more often, considered the ones of more credibility and preferred among them). That is possible by means of a questionnaire sent exclusively by e-mail, answered by Brazilian farmers. The motivation of the study is to contribute to make the communication more efficient to those who work on farms. That can produce benefits to the communication companies and to the public. The results show that the Internet is the mean of communication more often used and preferred on the process of searching information about the agribusiness among Brazilian farmers. The personal contact, not considered in the valuation about preference, appears in second position in the ranking for intensity of use. On the other hand, the radio, regional press newspapers and newsletters of class entities were the less consulted and the last ones in the ranking of preference.Agribusiness, Teaching/Communication/Extension/Profession,

Economic performance and international trade engagement: the case of Portuguese manufacturing firms

By combining economic and financial data for Portuguese manufacturing firms with data on their exports and imports, we uncover some aspects of the relationship between international trade engagement and firms’ performance. In line with recent theoretical and empirical developments in the international trade literature: (i) we testify that Portuguese international trade is highly concentrated, especially on the import side, and both in inter- and intra-sector terms; (ii) we corroborate previous studies and theses according to which two-way traders outperform only importers, only exporters and above all domestic firms; (iii) we find that the greater the diversification of markets and goods (especially with regard to imports), the better the performance achieved by internationalised firms; (iv) we notice that the higher the intensity of international trade of firms (especially imports), the better the performance of firms; (v) we also present evidence that destination markets, for exports, and, origin markets, for imports, are also important in explaining firm performance.International trade, Firm performance, Diversification