This article assesses the effectiveness of the labour market reforms implemented in Portugal as part of the Troika's structural
reform package. Using an ARDL-bounds test model to perform the econometric estimation, this investigation examines the long-run
relationship between unemployment, capital accumulation and labour market variables for the 1985-2013 period. The econometric
estimation suggests that capital accumulation has been the main driver of long-run unemployment, whilst labour market variables
have played a minor explanatory role. These results suggest that Portuguese NAIRU is endogenous to capital accumulation and
do not support the Troika's emphasis on labour market reforms as a strategy to reduce long-term unemployment.
Forschungsbereich:Arbeitsmarkt, Einkommen und soziale Sicherheit