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Wage adjustments during a severe economic downturn
In this article we present the recent developmentsof the wage distribution in Portugal. Thebehaviour of nominal wages reflects the effect ofa severe contraction of economic activity whichtranslated, above all, into a marked increase inthe proportion of zero nominal wage changes(wage freezes). The consequences of the pentupwage deflation may decisively influence thefuture development of the Portuguese labourmarket.