A carregar...
Publicação
International competitiveness : is the reduction of wages a solution? An evaluation of the Portuguese case
| Nome: | Descrição: | Tamanho: | Formato: | |
|---|---|---|---|---|
| 288.68 KB | Adobe PDF |
Orientador(es)
Resumo(s)
The purpose of this paper is to analyse, for the case of Portugal, the effectiveness of
wage reduction ‐ a current proposal since 2011 to help the country to reverse the high
public and external debt - in promoting the efficiency and international
competitiveness of the economy. A static multi‐sector and single‐country general
equilibrium model is used and data is collected from the GTAP7 Database. The
model allows the measurement of changes by sector. The simulations performed show that extending the reduction of wages already deployed by the government in the public sector to the private sector leads to a positive impact on employment
(both skilled and unskilled labour), production and volume of exports in all sectors except those that are R&D intensive, the latter having a low weight in the
Portuguese economy. However, it is possible that the positive results in terms of
external competitiveness are not sustainable, as the impact on productivity is
negative, albeit small, for most sectors. There are also reasons for concern
regarding the observed deterioration of the trade balance of most sectors, the
exception being the traditional labour intensive sectors, which show good prospects in this respect.
Descrição
Palavras-chave
Competitiveness Wages Stability and Growth Pact General Equilibrium Model Portugal
Contexto Educativo
Citação
Vaz, Elsa Cristina and Maria Paula Fontoura. 2013. "International competitiveness : is the reduction of wages a solution? An evaluation of the Portuguese case". Instituto Superior de Economia e Gestão. DE Working papers nº 3-2013/DE/UECE
Editora
ISEG - Departamento de Economia