Brain drain refers to the selective emigration of highly educated people, who often have stronger incentives to migrate and face fewer barriers. At first glance, this seems to be an adverse situation: losing doctors, engineers or teachers could hinder development. However, migration can also be beneficial by spurring investment in skills, fueling remittances, fostering innovation, business links, and transfers of knowledge and norms. The net impact depends on the skills involved and the context, creating an opportunity for policies that transform emigration into a driver of development.

The Portuguese labour market has stabilised after the 2010–2013 sovereign debt crisis, which pushed unemployment to a historic 18.5%. By 2025, the rate of unemployment has exhibited low-record levels reaching 5.9%. Long-term unemployment has declined, and the female employment rate reached historical values. Yet, several structural imbalances persist. Productivity levels remain low compared to European peers, and wages continue to struggle to keep pace with the cost of living.

How do minimum wage policies interact with labour tax evasion? In many transition economies, two features stand out: a large spike in the wage distribution at the minimum wage and widespread use of “envelope wages”—undeclared cash paid in addition to official earnings. This spike can be explained by the over-representation of tax-evading employers among minimum wage payers. In such a context, raising the minimum wage may serve as an enforcement tool by compelling evading firms to convert part of the undeclared pay into formal wages in order to comply with the legal minimum.

While Mexico has improved the education of its labor force, maintained a stable macroeconomic environment, and been friendly to international trade, its labor market still faces many challenges. In particular, Mexico has difficulty creating high-paying jobs: the share of informal employment has remained stagnant for the last 20 years, and, by 2025, remains above 50%. These problems are particularly poignant in southern Mexico.