Cousins from overseas: the labour market impact of half a million Portuguese repatriates

Abstract

This paper investigates the labour market consequences of an exogenous increase in the labour supply, exploiting the large and unexpected inflow of repatriates to Portugal following the end of the Portuguese Colonial War. I investigate the impact on labour force participation, unemployment and different types of employment of both male and female natives. I find no increase in unemployment but some displacement effects, with a stronger adverse effect on females. Fe-male and male native workers are found to be driven out of employment as employees. Men compensate for this loss by moving to self-employment, while women move to inactivity.