A1 Refereed original research article in a scientific journal
The effect of mass influx on labor markets: Portuguese 1974 evidence revisited
Authors: Makela E
Publisher: ELSEVIER SCIENCE BV
Publication year: 2017
Journal: European Economic Review
Journal name in source: EUROPEAN ECONOMIC REVIEW
Journal acronym: EUR ECON REV
Volume: 98
First page : 240
Last page: 263
Number of pages: 24
ISSN: 0014-2921
eISSN: 1873-572X
DOI: https://doi.org/10.1016/j.euroecorev.2017.06.016
Abstract
This paper provides a reappraisal of the evidence from the influx that has been unique in the recent European history, the flood of half a million returnees from Mozambique and Angola to Portugal in the mid-1970s. The objective of this paper is to study the impacts of a large supply shock on aggregate labor productivity, wages and unemployment. In contrast to the previous evidence, the synthetic control analyses find that the influx had a significant adverse effect on labor market outcomes. The results suggest that the Portuguese labor market responded precisely the same way as the standard textbook model predicts: an increase in the number of workers lowered average labor productivity and wages. (C) 2017 Elsevier B.V. All rights reserved.
This paper provides a reappraisal of the evidence from the influx that has been unique in the recent European history, the flood of half a million returnees from Mozambique and Angola to Portugal in the mid-1970s. The objective of this paper is to study the impacts of a large supply shock on aggregate labor productivity, wages and unemployment. In contrast to the previous evidence, the synthetic control analyses find that the influx had a significant adverse effect on labor market outcomes. The results suggest that the Portuguese labor market responded precisely the same way as the standard textbook model predicts: an increase in the number of workers lowered average labor productivity and wages. (C) 2017 Elsevier B.V. All rights reserved.
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