Custos unitários de trabalho e desemprego: que relação em Portugal

The estimation between the growth rate of unit labour costs and the unemployment rate based in annual data 1954-1995, using the Johansen Method, allows us to conclude two things. Firstly, the changes in unit labour costs are a decreasing function of changes in the unemployment rate and in the equilibrium error (between the growth rate of unit labour costs and the inflation rate). Secondly, they are un increasing function of foreign inflation, with a dummy control that refers to the April 1974 Revolution. Although, the unemployment rate is not significant in the long run, its changes are significant in the short run, in in accordance with the modified Phillips curve, with hysteresis in the unemployment rate.