The Bologna process aims at creating a European Higher Education Area where inter-country mobility of students and staff, as well as workers holding a degree, is facilitated. While several aspects of the process deserve wide public support, the reduction of the length of the first cycle of studies to three years, in several continental European countries where it used to last for four or five years, is less consensual. The paper checks the extent of public confidence in the restructuring of higher education currently underway, by looking at its implications on the demand for academic programs in Portugal. Precise quantification of the demand for each academic program is facilitated by the rules of access to higher education, in a nationwide competition, where candidates must list up to six preferences of institution and program. We use regression analysis applied to count data, estimating negative binomial models. Results indicate that the programs that restructured to follow the Bologna principles were subject to higher demand than comparable programs that did not restructure, as if Bologna were understood as a quality stamp. This positive impact was reinforced if the institution was a leader, i.e. the single one in the country that restructured that program. Still an additional increase in demand was experienced by large programs that restructured to offer an integrated master degree, thus conforming to Bologna principles while not reducing the program duration.

Real exchange rate movements are important drivers of the reallocation of resources between sectors of the economy. Economic theory suggests that the impact of exchange rates should vary with the degree of exposure to international competition and with the technology level. We show that both the degree of openness and the technology level mediate the impact of exchange rate movements on labour market developments. According to our estimations, whereas employment in hightechnology sectors seems to be relatively immune to changes in real exchange rates, these appear to have sizable and significant effects on highly open low-technology sectors. The analysis of job flows suggests that the impact of exchange rates on these sectors occurs through employment destruction.

A major element in the creation of the European area of higher education is the adoption of a common structure of degrees, implying in several countries the reduction of the duration of the first degree to 3 years, which is a controversial change. Cardoso et al. (CESifo Econ Stud 54(2): 229-247, 2008) have analyzed student confidence in the curricula change, quantifying its impact on students' first choices of academic programs. This paper goes two steps further. First, it concentrates on a variable that better translates total demand for an academic program, namely the total number of students who place the program among their six revealed preferences, instead of just the first option; and, second, an econometric model that better fits the data is estimated. Results confirm a positive impact of the Bologna process on the demand for programs, which varies with program size and across fields of study. Our results complement those in Cardoso et al. (2008), as they uncover that being a program leader, i.e. the only institution in the country that restructured a given program, was associated with higher demand by prospective students, which nevertheless stemmed from their ''second best'' options and not from their first choices.

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This paper characterizes and evaluates the student allocation in the Portuguese public higher education system. It describes the supply and demand sides of the system by looking at the numerus clausus across areas of study and institutions, institutions' degree of diversity, and performance and adjustment indicators based on students' revealed preferences. Performance indicators quantify the adequacy between demand and supply, across institutions and fields of study, and gauge the performance of public higher education institutions in the competition for candidates. Adjustment indicators allow us to predict the potential impact of changes in higher education regulations on student allocation and its stability. According to these indicators, such changes could result in an expansion for some institutions and fields of study, whereas other institutions might face a reduction.