You are here

Economics in a picture

Economia numa imagem

The evolution of the median wage of young workers has followed the increase of the national minimum wage

18.03.2022

Economics in a picture: The evolution of the median wage of young workers has followed the increase of the national minimum wage

 

The median net wage reported in the Labour Force Survey by young people aged 16 to 24 years-old has been increasing in recent years, in tandem with the rise in the national minimum wage. This outcome reflects the fact that a large share of young people earn the minimum wage. Between 2011 and 2021 the national minimum wage increased 180 euros while the median net wage of young people aged 16 to 24 years-old increased 200 euros. During this period the median net wage increased in all age groups.

 

This pattern is also observed for the wage of new young employees. In particular, the entry-level median net wage of young people with higher education exceeds that in other levels of education. By sector of activity, there is also some differentiation, with the lowest value in construction and the highest in the most qualified services.

 

 

For more details see Box 5 “Labour market outcomes for young people during the pandemic” published in the Economic Bulletin of Banco de Portugal, December 2021.

 

Prepared by Vanda Geraldes da Cunha, Fernando Martins, and Domingos Seward. The analyses, opinions and findings expressed above represent the views of the authors and not necessarily those of the Banco de Portugal or the Eurosystem.

 

If you want to receive an e-mail whenever a new “Economics in a picture” is published send your request to info@bportugal.pt.