Immigrant involvement in the informal economy: The Portuguese case

Abstract

This article demonstrates how Portugal, despite appearing to be being a country which would be unattractive country to immigrants, is rapidly becoming a country of immigration. The existence and extent of opportunities for immigrants in Portugal is assessed with this objective in mind. On the basis of an analysis of the country's labour market, the immigrants’ economic profiles and the Portuguese informal economy—and the interaction of these factors—it is concluded that the Portuguese economy is currently generating labour demands which the immigrants are satisfying. In some cases they complement and in others they substitute for the domestic labour force. While the mismatch in the highest segments of the labour force between the skills which are in demand and those which are on offer is creating numerous opportunities for highly qualified immigrants—who come mainly from Europe and Brazil—the spread of economic informality in the lowest segments of the labour market is also generating plenty of opportunities for unqualified or poorly qualified immigrants. This latter group primarily come from Portuguese Speaking African Countries.