Income inequality in Portugal and in Europe: the impact of austerity? By Renato Miguel do Carmo and Ana Rita Matias

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By: Renato Miguel do Carmo and Ana Rita Matias

Street with tramway rails in Lisbon, Portugal

In the European countries affected by austerity measures and structural adjustment programmes (Portugal, Greece, Ireland and Spain), data shows a significant increase in income inequalities. Meanwhile, these four countries saw a decline in the GDP, which besides representing an effective impoverishment led to a stagnation in the Human Development Index.

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Inequalities in Portugal: recent and structural trends

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By: Renato Miguel do Carmo, Frederico Cantante and Margarida Carvalho 


Social inequalities are multidimensional and affect different sectors of society.  


Social inequalities are multidimensional and affect different sectors of society. This paper will present data regarding several dimensions of inequality. The paper proceeds as follow. Firstly it focuses on income inequalities (disposable income, pre-tax income, salaries and earnings). Then it analyzes the interaction between income disparities and school attainment as the main inequality drivers in Portugal. Our country is still characterized by a considerable schooling deficit and low wage levels of a substantial part of the employed population (especially those who hold lower levels of education and qualification). The final part of the paper it discusses the impact of the economic crises, namely the increasing of unemployment rates and the impact of the austerity measures [1].

Earning inequalities in the parishes of Lisbon

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By: Margarida Carvalho and Renato Miguel do Carmo 

Lisbon municipality distinguishes itself from the remaining Portuguese territory by the higher earnings the workers receive there. However, the municipality is crossed by higher inequality levels than those recorded in national terms. And these inequalities aren’t homogeneously distributed on the municipality’s parishes.

“Quadros de Pessoal” database is collected annually by the Strategy and Planning Office at the Ministry of Labour and Social Solidarity (GEP/MTSS). It results from a survey applied to all Portuguese companies and it collects information about these companies’ establishments and workers. Since 2003 the parish of the establishment is one of the collected information. The possibility to do an analysis at the parish level allows a more comprehensive view of what happens inside the municipalities. 

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