Portuguese Labour Market Governance in Comparative Perspective
Abstract. This chapter analyses the core characteristics of labour market governance in Portugal in a comparative perspective, analyzing the interplay of public and private regulation in the setting of wages and employment conditions. The chapter describes the main characteristics of the Portuguese employment model within the European context and how it departs from other Southern European countries, notably when it comes to female and low-skilled employment. The chapter argues that the power relationships that emerged out of the transition to democracy favoured a more liberal employment regime than in Spain, resulting in a lower threshold of unemployment but also higher income inequalities and lower wage protections. The models have tended to converge in recent years, and income inequality in Portugal has diminished. The chapter highlights the high level of female employment since the 1960s, a characteristic that departs significantly from other Southern European countries. It is explained by specific contextual factors, notably the legacy of the colonial war and high rates of emigration.