Portugal is the fifth most unequal country in the EU according to a report by the European Commission. EU statistics on income and living conditions – Eurostat (europa.eu). This document brings together an important collection, which collects timely and comparable cross-sectional and longitudinal data on income, poverty, social exclusion and living conditions. Information on social exclusion and housing conditions is collected mainly at the household level. Information on Work, Education and Health is obtained from citizens aged 16 or over and income variables, in terms of other detailed components, are also collected, mainly, from individuals.
In the year that celebrates the 50th anniversary of the Revolution of April 74, much will have been achieved in the country, but much remains to be accomplished. We would even say, as a historical reminder, that of the “famous” three D’s – designs of the Revolution, “Develop” will be the one for which we will have to fight even harder. A lot more!
If the issue of inequality is, in itself, complex and multidisciplinary, in the approaches it deserves, let us agree that it concerns working conditions (with “upfront” salaries), combined with Education, as a “driver” for improving qualifications. and, consequently, for the increase in workers’ remuneration matters, in our modest opinion, they will be among the most relevant, and on which Portugal should invest, since it has a long way to go here.
Furthermore, as is known, and according to the so-called Mincer Equation, in the last 40 years, for each year of Education, on average, salaries end up increasing by 9%. Rate of return, in fact, which recent studies point to relative stability, with a greater impact on its constancy, with slight evolution in the poorest countries compared to the richest. Particularly, in Portugal, this rate currently stands at 7%.
Maintaining social cohesion is, therefore, an objective that must move us and on which there is broad consensus from all quarters. Paradigmatically, everywhere, we also hear people defending public policies of an economic, social and other nature, and everyone expressly advocates for the reinforcement of social cohesion, giving it a sign of centrality, which is expressed, as we saw, in socioeconomic solidarity items.
It is urgent, of course, to make it happen! Now, even, a new cycle is announced.
It would be good, therefore, to see public policy measures implemented, with effective impact and that respond to the pressing and current challenges of reducing pockets of poverty, especially in our cities; mitigate socioeconomic discrimination against minorities; ensure an efficient schooling and training network, as well as equal access and conditions for full adherence to formal education and schooling for everyone, regardless of their condition; a renewed worker-student status, which ensures effective working and study conditions, allowing workers to integrate into a large middle class with equal benefits and privileges; and, finally, a social security system that leaves no one unprotected. All this, in parallel, with conditions that look at the excessive tax burden on labor income, a reality that has been increasingly impacting what could be the growth in average wages (the most necessary), as a result of the combination of these with the progressive labor income tax rate scheme; combined, as we know, with the reduction of tax benefits and deductions.
