Event summary

Abstract: This paper examines the impact of a minimum wage unfreeze in Portugal subsequent to the conclusion of an economic adjustment program on firms’ export outcomes. The results do not support a systematic negative impact of the minimum wage increase on export revenues nor on the extensive margin of exports. Instead, negative effects are concentrated on specific products of small firms — those characterized by higher elasticity of substitution, higher labor intensity, and lower quality. This evidence suggests that minimum wage increases may induce significant shifts in the product composition of export baskets.

Short bio: Joana Garcia is an economist at the Economics and Research Department of Banco de Portugal since 2014. She is a PhD student and researcher of NIPE since 2021. Her thesis is advised by Fernando Alexandre and João Amador. Her research interests include international economics, international trade and public economics. Her work has been published in the IMF Economic Review and Revista de Estudos Económicos (Banco de Portugal).

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