How relevant is the information contained in credit transfer microdata for the economic sector and regional salary characterisation in Portugal?

Abstract

Salary information is crucial for designing and evaluating labour market policies. Traditional data sources on salaries in Portugal usually have significant time lags, limiting decisions during volatile periods. Since credit transfers are widely used for salary payments, daily transaction data collected by Banco de Portugal presents a timely alternative. This study evaluates the suitability of credit transfer transactions for analysing salary dynamics in Portugal during the first semester of 2024. The findings demonstrate that credit transfer payments data offers up to-date and detailed insights into salary trends and regional disparities, providing a valuable tool for monitoring and informing policy decisions.