Reports

This publication contains the 2022 Second Round Peer Review Report on the Exchange of Information on Request for Portugal.

This country note presents the results of an analysis of undertake Portugal undertaken within the Labour Market Relevance and Outcomes of Higher Education Partnership Initiative project. The project was implemented by the OECD with the support of the European Commission with the aim of helping policy makers and higher education institutions enhance the employment outcomes of graduates by better aligning higher education provision with labour markets skill demands. Portugal has a high the concentration of students in short-cycle programmes in Information and Communications Technology (ICT) and engineering. These programmes have the potential to increase student enrolment in bachelor and postgraduate fields of study that are connected with the digital and technological transition of the economy, and so far have seen low enrolment. The success of short-cycle programmes as pathways to further study will require a combined approach of improved study guidance and student support. The country note reviews the system context, highlights challenges faced by higher education institutions and, lessons learned from current practice, and presents policy options.

This publication is part of the OECD workstream on Preparing Regions for Demographic Change. It elaborates a case study for the Portuguese region of Alentejo and focuses on improving the delivery of educational services taking into account the multi-level governance context. The study highlights the need to better articulate and co-ordinate the delivery of educational services among levels of government to improve access and quality. It also sheds light on the decisive role that geography plays and the importance of adopting a spatial lens to mitigate the rising inequality present in Portugal in access to education services. Alentejo is a rural region that expects to lose 30% of its population between 2020 and 2080, hence it needs to put in place forward-looking and effective policy levers to delivery sustainable education services to citizens living in rural communities.

Le Comité d’aide au développement (CAD) de l’OCDE procède à des examens par les pairs de ses membres une fois tous les cinq ou six ans. Ces examens visent à améliorer la qualité et l’efficacité de leur coopération pour le développement, en mettant en évidence les bonnes pratiques et en recommandant des améliorations. Le Portugal mobilise les compétences de l’ensemble de son administration et met fortement l’accent sur l’appropriation par les pays partenaires. Fort des relations bilatérales étroites qu’il a établies de longue date avec les pays partenaires, le Portugal concentre ses financements sur les pays où les besoins sont les plus grands. Par son action de plaidoyer efficace sur la scène internationale, le Portugal est un ardent défenseur de la coopération triangulaire et, en tant que président du Conseil de l’Union européenne, il a favorisé le consensus entre les membres de l’Union sur des questions comme le renforcement des initiatives Team Europe en faveur du développement humain. Cependant, le Portugal pourrait tirer davantage parti de la large participation des acteurs étatiques et non étatiques à ses activités de coopération pour le développement. Cet examen par les pairs formule un ensemble de recommandations destinées à améliorer la coordination entre les différentes composantes de l’administration, à rassembler les initiatives bilatérales, à accorder une plus grande attention aux réalisations et à prendre des mesures pour accroître l’aide publique au développement (APD).

The Review of Inclusive Education in Portugal provides, from an international perspective, an independent analysis of major issues regarding diversity, equity and inclusion in education in Portugal, current policy initiatives, and possible future approaches. The report serves three purposes: i) to provide insights and advice to Portuguese education authorities; ii) to help other countries understand the Portuguese approach to inclusive education; and iii) to provide input for comparative analyses of the OECD Strength through Diversity project. The scope for the analysis in this report covers primary (including 1st and 2nd cycle of basic education) and secondary education (including 3rd cycle of basic education and upper secondary). The analysis in the report focuses on the following areas: i) governance and financing of inclusive education; ii) capacity building; iii) school-level interventions and iv) monitoring and evaluation. This report will be of interest in Portugal and other countries looking to improve the equity and inclusion in their education systems.

This report assesses the enabling conditions for maximising the benefits of foreign direct investment (FDI) on SME productivity and innovation in Portugal. It looks at the quality of investment that Portugal attracts and the capacity of Portuguese SMEs to benefit from any knowledge and technology spillovers resulting from these investments. It studies the extent to which FDI-SME spillovers occur through value chain linkages, strategic partnerships, labour mobility, competition and imitation effects. The report provides an overview of Portuguese public institutions responsible for investment, SMEs, innovation and regional development policies, taking a close look at arrangements to ensure multi-level policy coordination, stakeholder consultation and evaluation of policy impacts. It then reviews the mix of government policies that are currently in place to support FDI-SME linkages and spillovers, noting areas for further policy reforms. The last chapter introduces a regional lens, focusing in particular on the regions of Norte and Alentejo. This report is part of a broader European Commission-OECD programme on strengthening FDI-SME linkages and serves as a pilot for future country assessments.

Italy’s start-up visa aims to make the national start-up ecosystem more easily accessible to foreign talent, rich with knowledge and skills, and more integrated into global markets. Government reports show that the programme has not yet achieved a critical scale. The analysis of similar initiatives in Chile, France, Ireland and Portugal identifies five gateways for attracting more foreign entrepreneurs, such as an effective policy outreach, smooth inter-institutional co-operation across the migratory process, and the provision of sound support services for a 'soft landing' of entrepreneurs upon arrival. These takeaways may also inform new talent attraction policies targeting remote workers, an expanding group in the context of the ongoing COVID-19 pandemic.

After a decade of steady growth, the tourism sector in Portugal is facing its most acute challenge in modern times, in the wake of the COVID-19 pandemic. As inbound visitors return to Portugal, the tourism workforce will need digital skills to make effective use of new technologies, and exploit the opportunities digitalisation is opening up for marketing, as well as product and destination development. Successful digital uptake by businesses will be a driving force in building recovery and resilience in the longer term. While there has been progress in recent years, especially in response to the pandemic, there remains considerable scope to go further. To support this digital transformation, this report examines and assesses current policy approaches to support digital skills and workforce development in the sector, and presents a selection of policy considerations to: i) address digital transformation gaps, shortages and opportunities for workforce organisation and skills development, and ii) enhance governance mechanisms to support the digital skills transformation of the tourism workforce.

This profile provides a concise and policy-relevant overview of health and the health system in Portugal as part of the broader series of the State of Health in the EU country profiles. It provides a short synthesis of: the health status in the country; the determinants of health, focussing on behavioural risk factors; the organisation of the health system; and the effectiveness, accessibility and resilience of the health system. This edition has a special focus on the impact of COVID‑19. This profile is the joint work of the OECD and the European Observatory on Health Systems and Policies, in co-operation with the European Commission.

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.