Portugal

There is a growing international concern about the slowdown in productivity growth, especially as labor productivity enhancements are important drivers of higher generalised living standards. Using administrative data of firms in Portugal between 2010 and 2016, we analyse the relationships between productivity and wages. At odds with neoclassical theory of marginal productivity of labor, we find that two thirds of firms insufficiently raised wages given observed productivity growth. Employing unconditional quantile regressions, we investigate some quantifiable determinants of the productivity-wage gap at different parts of the distributions. Most of the documented dynamics contributed not only to the divergence of productivity and wages but also to the decoupling of productivity and wage growth. We argue that labor market flexibilisation intensified segmentation, providing incentives for non standard contracts. Both dimensions, as well as higher board compensations, international trade and on-the-job training weakened the link between productivity and wages.

In this paper, we focus on the managerial characteristics of micro and small-sized firms. Using linked employer-employee data on the Portuguese economy for the 2010-2018 period, we estimate the impact of management teams’ human capital on the probability of firms becoming financially distressed and their subsequent recovery. Our estimates show that the relevance of management teams’ formal education on the probability of firms becoming financially distressed depends on firms’ size and the type of education. We show that management teams’ formal education and tenure reduce the probability of micro and small-sized firms becoming financially distressed and increases the probability of their subsequent recovery. The estimates also suggest that those impacts are stronger for micro and small-sized firms. Additionally, our results show that functional experience previously acquired in other firms, namely in foreign-owned and in exporting firms and in the area of finance, may reduce the probability of micro firms becoming financially distressed. On the other hand, previous functional experience in other firms seems to have a strong and highly significant impact on increasing the odds of recovery of financially distressed firms. We conclude that policies that induce an improvement in the managerial human capital of micro and small-sized firms have significant scope to improve their financial condition, enhancing the economy’s resilience against shocks.

Les gouvernements du XXIe siècle doivent suivre l'évolution des attentes de leurs citoyens et tenir les promesses de l'ère numérique. Les approches basées sur les données sont particulièrement efficaces pour répondre à ces attentes et repenser la manière dont les gouvernements et les citoyens interagissent. Ce rapport souligne le rôle important que les données peuvent jouer dans la création de conditions améliorant les services publics, augmentant l'efficacité des dépenses publiques et éclairant les considérations éthiques et de confidentialité. Il présente un cadre du secteur public fondé sur les données pouvant aider les pays ou les organisations à évaluer les éléments nécessaires à l'utilisation des données afin de prendre des décisions mieux informées dans tous les secteurs publics.

Portugal aims to develop a more innovative, inclusive and productive economy, and to ensure that the ensuing benefits are widely distributed, regionally and socially. This report assesses the extent to which Portugal’s higher education, research and innovation system is well configured to help Portugal achieve its vision of inclusive innovation, and identify which policy options might help it achieve its goals. The assessment and the related recommendations focus on: 1) governance, strategy and funding in higher education, research and innovation; 2) the missions, profiles and use of resources of higher education institutions; 3) undergraduate and master’s level education activities; 4) doctoral training activities; 5) academic careers; 6) high-skill employment and business innovation.