Economics
Research insight
January 4, 2021

An analysis of inequality and poverty in Portugal

The purpose of this report is to make a description of the income inequality and poverty in Portugal nowadays and throughout the last decades and comparing it with other European countries, in order to reach conclusions about the effectiveness of the policies that have been used to tackle these problems. Information from important working papers on the subject is used, as well as databases such as Pordata and the World Inequality Database. Historically, income inequality does not display the same path as other Western countries, staying high for most of the 20th century, falling after the establishment of democracy in 1974 and increasing from the 1980s, with globalization. In Portugal, the elderly and the young are the most exposed to poverty, as well as singleparent families and families with three or more children. In addition, Madeira and Azores are the regions that presentthe highest values of income inequality and poverty. Portugal is amongst the most unequal and poorest European countries. Concerning government intervention, direct taxes have been the policy with the highest efficacy in reducing income inequality, while social transfers are the most efficient.

Student Authors: Carlos Oliveira, Diogo Roberto, Henrique Santos, Francisco Vale and Joana Leitão

This content was originally published in Nova Economics Club website.

Nova Economics Club

Nova Economics Club

Nova Economics Club is the Economics club at Nova School of Business and Economics. Since 2012, its focus is to create a bridge between the theory learnt in classes with the work performed by economists on a daily basis.

Website
1. No poverty
10. Reduced inequalities
17. Partnerships for the goals
Coins and a calculator.
Economics
Research insight
SDG
8

Fiscal discipline and exchange rates: does politics matter?

This article explores the effect of exchange rate regimes on fiscal discipline, taking into account the effect of underlying political conditions.

Learn more
Woman working on a computer, using a calculator.
Economics
Project
SDG
8
17

The Impact of IRC in the Portuguese Economy

Nova SBE Economics for Policy Knowledge Center's research project contributes to the analysis of the impact that the tax system and its changes have on the Portuguese economic, social, and legal reality.

Learn more
Economics
Opinion Article
SDG
17

Behavioral economics in action: the role of behavioral units in politics

In this era of social networks, communication has reached new levels of virality. The Network of Networks - the Internet - has facilitated the creation of a new status quo: from governments and businesses to common citizens, each piece of information inserted and shared in the Web has the potential (given some very small probability factors) to become viral.

Learn more