Trade and Jobs in Portugal: A Microeconomic Approach. CEPS Working Document No. 160, January 2001

The Portuguese economy presents a low unemployment rate when compared to its European counterparts and it has been claimed that this is partly due to the slow restructuring of the economy, which has been keeping its specialisation in traditional industries, some of them major exporting industries. This study analyses job creation and job destruction at the firm level across skill groups, during the 1980s and the 1990s. The major aim is to explore the role of international trade against alternative explanations of job flows, providing an answer to the question: did international trade help sustain the employment of particular groups of workers, namely the least skilled, in the Portuguese economy? Could conditions in international markets therefore have contributed to keep a low unemployment rate? A matched data set on workers and firms is used, which includes a direct measure of the skill of the worker. Results indicate that technology indicators are more relevant determinants of job flows than conditions in international product markets. Indeed, import prices have no impact on job creation or job destruction for the unskilled or on job creation for the skilled. Higher export prices lead to job creation for the skilled labour force, thus pointing to a certain skill upgrading

“Landscape and Heritage of Hydroelectricity in Portugal”

Hydroelectric power plants provided countries with scarcity of coal, such as Portugal, with a vital source of energy for the production of electricity in large quantities. Therefore, since the late 19th century the use of waterfalls as producers of electric power was a topic of study and interest among engineers and the matter was regularly discussed at the Association of Portuguese Civilian Engineers. The great hydroelectric power plants, considered by many as the cathedrals of the second industrial revolution are an important industrial heritage which is important to value and appreciate. Hydroelectricity also gave origin to new landscapes and the problem today regards the management of this new landscape and the construction of new patrimonial values

Long-Term Impact of Youth Minimum Wages: Evidence from Two Decades of Individual Longitudinal Data

This paper quantifies the long-run impact of exposure to youth minimum wages and sheds light on its mechanisms. It uses remarkable longitudinal data spanning for twenty years and explores legislative changes that define groups of teenagers exposed for different durations. After controlling for the contemporaneous impact of the minimum wage, its long-run impact translates into: an overall wage premium, consistent with an upgrading in the quality of jobs offered; a flatter tenure-earnings profile, consistent with lower initial investment in firm-specific training. Interestingly, the overall wage premium increases with exposure and the tenure-earnings profile is flatter the longer the exposure.skill formation, human capital investment, on-the-job-training, career, long-term, linked employer-employee data

Asserting the Portuguese Civil Engineering Identity: the Role Played by the École des ponts et chaussées

This paper focuses on the Portuguese engineers who returned to Portugal following a training period at École des Ponts et Chaussées, in Paris between 1831 and 1870. During the 19th century, in spite of the creation of engineering schools, such as the Military Academy (1836), the Polytechnic School of Lisbon (1837), the Polytechnic Academy of Oporto (1837), the number of engineers to ensure the planning and the direction of the public works remained insufficient. Moreover, the education provided by these schools granted almost no room for fieldwork. Like in the other European States, some Portuguese engineers tried to complete their training in foreign countries, in particular by attending schools such as the École des Ponts et Chaussées de Paris. The studies which they carried out as well as the projects and the “missions d’études” enabled them to intervene in various areas, from the construction of bridges and railways to agricultural hydraulics on their return to Portugal. Following their return, these engineers played an important role both in the transfer of knowledge as well as in updating Portuguese engineering. They designed and directed various public works and transmitted to their subordinates the most modern methods of planning and construction of roads, railways and seaports. In addition, they were appointed to political and administrative positions in particular within the Ministério das Obras Públicas, Comércio e Indústria created in 1852, in the context of which they had to evaluate, authorize or reject various engineering projects. Finally, some were appointed professors in Portuguese engineering schools where they taught new theories, methods and practices of civil engineering which they had learnt in Paris or during trips abroad

Can Compulsory Military Service Raise Civilian Wages? Evidence from the Peacetime Draft in Portugal

Although the practice of military conscription was widespread during most of the past century, credible evidence on the effects of mandatory service is limited. Angrist (1990) showed that the Vietnam-era draft in the U.S. lowered the early-career wages of conscripts, a finding he attributed to the low value of military experience. More recent studies have found a mixed pattern of effects, with both negative (the Netherlands) and positive (in Sweden) earnings impacts. Even among Vietnam era draftees, Angrist and Chen (2011) find that the net effect on earnings by age 50 is close to zero. We provide new evidence on the long-term impacts of peacetime conscription in a "low education" labor market, using longitudinal data for Portuguese men born in 1967. These men were inducted at a relatively late age (21), allowing us to use pre- conscription wages as a control for potential ability differences between conscripts and non- conscripts. Our estimates of the average impact of military service for men who had entered the labor market by age 21 are slightly positive (1-2 percent) but not significantly different from zero throughout the period from 2 to 20 years after their service. These small average effects arise from a significantly positive later-life impact for men with only primary education, coupled with a zero-effect for men with higher education. The positive impacts for less-educated men suggest that mandatory service can be a valuable experience for poorly-educated men who might otherwise spend their careers in low-level jobs.quasi-differences, longitudinal earnings, military conscription, sensitivity analysis

Can Compulsory Military Service Increase Civilian Wages? Evidence from the Peacetime Draft in Portugal

Although military conscription was widespread during most of the past century, credible evidence on the effects of mandatory service is limited. We provide new evidence on the long-term effects of peacetime conscription, using longitudinal data for Portuguese men born in 1967. These men were inducted at a relatively late age (21), allowing us to use pre-conscription wages to control for ability differences between conscripts and non-conscripts. We find that the average impact of military service for men who were working prior to age 21 is close to zero throughout the period from 2 to 20 years after their service. These small average effects arise from a significant 4-5 percentage point impact for men with only primary education, coupled with a zero-effect for men with higher education. The positive impacts for less-educated men suggest that mandatory service can be a valuable experience for those who might otherwise spend their careers in low-level jobs.

School drop-out and push-out factors in Brazil : the role of early parenthood, child labor, and poverty

This paper aims to identify the major drop-out and push-out factors that lead to school abandonment in an urban surrounding-the shantytowns of Fortaleza, Northeast Brazil. The authors use an extensive survey addressing risk factors faced by the population in these neighborhoods, which cover both in-school and out-of-school youth of both genders. They focus on the role of early parenthood, child labor, and poverty in pushing teenagers out of school. The potential endogeneity of some of the determinants is dealt with in the empirical analysis. The authors take advantage of the rich set of variables available and apply an instrumental variables approach. Early parenthood is instrumented with the age declared by the youngsters as the ideal age to start having sexual relationships. Work is instrumented using the declared reservation wage (minimum salary acceptable to work). Results indicate that early parenthood has a strong impact of driving teenagers out of school. Extreme poverty is another factor lowering school attendance, as children who have suffered hunger at some point in their lives are less likely to attend school. In this particular urban context, working does not necessarily have a detrimental effect on school attendance, which could be linked to the fact that dropping out of school leads most often to inactivity and not to work.Education For All,Youth and Governance,Population Policies,Tertiary Education,Street Children

Temporary Help Services Employment in Portugal, 1995-2000

Whereas there is widespread belief that workers in temporary help services (THS) are subject to poorer working conditions, in particular pay, than comparable workers in the rest of the economy, there is little evidence on whether that is driven by the sector per se or by the workers' characteristics. The first aim of this analysis is to quantify the wage penalty, if any, for workers in THS firms. Secondly, we analyze the wage profile of workers right before and after spells of THS. Linked employer-employee data for Portugal enable us to account for observable as well as unobservable worker quality. Our results show that workers in THS firms earn lower wages than their peers and that this difference is mostly due to the workers' characteristics. We estimate that workers in THS firms earn on average 9% less than comparable workers in the rest of the economy if we control for the workers' observable attributes only. This difference is reduced to about 1% when we control for unobservable characteristics as well. However, interesting differences emerge across groups. Younger workers, both men and women, earn higher wages in TAW than their peers in other firms, while the opposite holds for prime-age and older workers. Moreover, for young workers THS firms is not associated with a stigma effect that slows their wage progression after they work for THS, as opposed to prime-age and older workers, in particular males. Also before entering THS the wage trends are different. Prime-age and older workers, both male and female, see their wages deteriorate relative to their peers before entering THS, suggesting that adverse labor market conditions may motivate them to search for a THS job. On the contrary, for young workers we do not detect any pre-THS wage trend.

The dynamics of job creation and destruction for University graduates: why a rising unemployment rate can be misleading

This study uses a longitudinal matched employer-employee data set on the Portuguese economy to analyze systematic information on job creation and job destruction for university graduates, comparing it to other groups of workers. We find that the unemployment rate can provide an incomplete and misleading idea of the dynamics in labor demand and of the employment prospects for university graduates. The pessimistic view that seems to be popular nowadays, stating that the expansion of higher education may have gone too far and that investment in higher education has become a too risky business, possibly not worthwhile, as employers are no longer keen on recruiting newly graduate workers, does not find support in the empirical evidence for the Portuguese economy.unemployment, gross job flows

Youth risk-taking behavior in Brazil : drug use and teenage pregnancy

Using an extensive survey that addresses risk factors faced by the population in the shantytowns (favelas) of Fortaleza, Brazil, the aim of this paper is to study risk-taking behavior by youth, focusing on drug use and teenage pregnancy. The paper analyzes the impact of factors such as exposure to mass media, the existence of support networks, self-esteem, and the occurrence of violence at home and in the neighborhood, on the probability of risk-taking behavior. A bivariate probit model is estimated. The findings indicate that reliance on support networks and exposure to mass media are associated with a lower probability of either type of risk behavior. Living in a violent home increases drug consumption. Race does not have a significant impact on either type of behavior.Adolescent Health,Population Policies,Health Monitoring&Evaluation,Youth and Governance,Gender and Health