Why Are Wages in Portugal Lower Than Elsewhere in Eec

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Why Are Wages in Portugal Lower Than Elsewhere in Eec
Fernando Branco
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674 0836 805 0856 0. 941 178% 21 5% 15. 5% 6. 0% 1982 649 0823 0, 788 0. 897 879 186% 22 7% 10. 4% 123% 1984 578 0. 797 0, 726 0. 938 0. 773 17 8% 25. 2% 5. 0% 20. 2% 1985 580 784 0, 740 931 0. 795 19 2% 23 8% 5. 7% 182% 1986 0, 607 0, 776 0. 782 941 0. 831 20 2% 19 6% 4 9% 14, 7% 1987 0, 594 0, 761 0, 780 934 834 24. 6% 22 3% 6 0% 163% 1988 584 750 0, 778 946 822 27 1% 23 6% 5 2% 184% Table 8: Productivity Gap between Portugal and Ireland separate union power that is directly reflected on wage...s from difi"erences in social benefits between Portugal and other European countries. '^ The disaggregation uses expression (17), taking 7 equal to one, \VL -(1 1-^- ^.. -■r.
1 -c- and the results are presented in Tables 9-12.^' In Table 9 the industrial relations gap is decomposed for the average of the other eleven EEC countries. One immediately notices that after having net out social contributions, employers' rents were lower than for the case of 7 = 0. This is because of higher social security contributions in Europe than in Portugal, also reflected in numbers less than 1 under the column Social Security.


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