According to a study by the Bank of Portugal (BdP) published this Monday, the real average wage of young people with higher education in 2020 was lower than in 2006.
The conclusion is part of the study “Wage distribution in Portugal between 2006-2020”, which will also be published this week in the March economic bulletin of the BdP.
The results of the study show a “very sharp decline in average starting wages” in the labor market of young people with higher education under the age of 30, especially between 2010 and 2014, with a subsequent recovery, which, however, will not prevent similar levels in real terms by 2006.
In 2020, the average real wage to enter the labor market was €1,050 for a young person with a degree or bachelor’s degree, while in 2006 the value was €1,088.
In the case of a young person with a master’s degree, the average real wage at admission increased slightly, from €1,150 in 2006 to €1,178 in 2020.
“In the most recent period, the average real wage is still lower than that observed between 2006 and 2010, but wage growth in subsequent years (…) has been more marked,” read the document. , which explains that this situation may be due to “a gradual adjustment in the demand for work to a significant increase in the supply of workers with higher education.”
By age group, the document notes that, despite an increase in recent years, “in 2020, the average real wage of persons aged 25 to 34 (€2,073) was still below the real average wage in 2006. the group directly above (€2,102).”
“This illustrates the importance of the starting salary in determining wages throughout the working life,” emphasizes the BdP.
However, there are situations that can change an individual’s wage trajectory, such as a job change that results in a 5% increase in average wages, which is higher than the average 2% wage increase seen for workers who are unemployed. in the same position in the company from 2006 to 2020.
This difference, according to the paper, tends to be smaller during recessive periods due to a decrease in the number of employees hired.
“The average wage growth associated with a job change seems to be more significant for workers with higher education, averaging 9% per shift year,” BdP points out.
Author: Portuguese
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.