Some evidence on the segmentation of the labour market

The table below presents mean characteristics of workers under permanent and temporary contracts, according to the 2009 personnel records ("Quadros de pessoal"). "Recibos verdes" are excluded, as well as those working for temporary agencies, on traineeships (and the unemployed).

Only workers aged 25 to 35 and with a university degree are considered, a total of about 220,000 people. 35% of these workers are found to be on temporary contracts.

Gender, age and schooling means appear to be similar across the two contract types. The big differences emerge in terms of tenure (years with the same employer): 4.5 in the case of permanent workers and only 1.6 in the case of temporary workers; and monthly gross salaries, 1,600 euros in the case of permanent workers and less than 1,200 in the case of temporary workers.