IDEAS home Printed from https://ideas.repec.org/a/spr/ijlaec/v62y2019i4d10.1007_s41027-019-00190-9.html
   My bibliography  Save this article

Evidence of the Public–Private Wage Gap for Brazil in the Period from 2008 to 2016

Author

Listed:
  • Daniela Peres Cardozo

    (State University of Maringá)

  • Marina Silva Cunha

    (State University of Maringá)

Abstract

The present study aims to analyze the wage gap between the public and private sectors in Brazil from 2008 to 2016 based on microdata from the Annual Social Information Report (Relação Anual de Informações Sociais, RAIS). The results show that public-sector wages are higher than private-sector wages in Brazil and are decreasing at federal, state, and municipal levels. These differences are greater for workers in the judiciary, and in large municipalities and metropolises. The most skilled individuals receive lower salaries in the public sector, and the public–private difference is greater among women than men. It is also possible to verify that the wage gap can be explained better by the composition of employees in each sector than by the unobserved characteristics that affect the ways in which the sectors pay. At the end of the analyzed period, there is a reduction in participation in private-sector employment and an increase in the public–private wage gap with the economic downturn in the country.

Suggested Citation

  • Daniela Peres Cardozo & Marina Silva Cunha, 2019. "Evidence of the Public–Private Wage Gap for Brazil in the Period from 2008 to 2016," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 577-594, December.
    • Handle: RePEc:spr:ijlaec:v:62:y:2019:i:4:d:10.1007_s41027-019-00190-9
    DOI: 10.1007/s41027-019-00190-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41027-019-00190-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s41027-019-00190-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hartog, Joop & Oosterbeek, Hessel, 1993. "Public and private sector wages in the Netherlands," European Economic Review, Elsevier, vol. 37(1), pages 97-114, January.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Ana Luiza Neves de Holanda Barbosa & Fernando de Holanda Barbosa Filho, 2012. "Diferencial de Salários Entre os Setores Público e Privado no Brasil: Um Modelo de Escolha Endógena," Discussion Papers 1713, Instituto de Pesquisa Econômica Aplicada - IPEA.
    4. Keith A. Bender, 1998. "The Central Government‐Private Sector Wage Differential," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 177-220, April.
    5. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    6. Walter Fogel & David Lewin, 1974. "Wage Determination in the Public Sector," ILR Review, Cornell University, ILR School, vol. 27(3), pages 410-431, April.
    7. Souza, Igor Viveiros de & Machado, Ana Flávia, 2004. "Curva de Rendimentos: uma Análise no Mercado de Trabalho Urbano e Rural no Brasil (1981/ 99)," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 42(1), pages 1-20, March.
    8. Cunha, Marina Silva da, 2008. "Os empregados da agricultura brasileira: diferenciais e determinantes salariais," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 46(3), pages 1-25, September.
    9. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    10. Smith, Sharon P., 1977. "Government wage differentials," Journal of Urban Economics, Elsevier, vol. 4(3), pages 248-271, July.
    11. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    12. Marianthi Leontaridi, 1998. "Segmented Labour Markets: Theory and Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(1), pages 103-109, February.
    13. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    14. Nikolic, Jelena & Rubil, Ivica & Tomić, Iva, 2017. "Pre-crisis reforms, austerity measures and the public-private wage gap in two emerging economies," Economic Systems, Elsevier, vol. 41(2), pages 248-265.
    15. Leontaridi, Marianthi Rannia, 1998. "Segmented Labour Markets: Theory and Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(1), pages 63-101, February.
    16. Don Bellante & Albert N. Link, 1981. "Are Public Sector Workers More Risk Averse Than Private Sector Workers?," ILR Review, Cornell University, ILR School, vol. 34(3), pages 408-412, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    2. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    3. Ravi Srivastava, 2019. "Emerging Dynamics of Labour Market Inequality in India: Migration, Informality, Segmentation and Social Discrimination," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(2), pages 147-171, June.
    4. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.
    5. Evangelia Papapetrou, 2006. "The Public-Private Sector Pay Differential in Greece," Public Finance Review, , vol. 34(4), pages 450-473, July.
    6. Andreas Peichl & Nico Pestel & Sebastian Siegloch, 2013. "The politicians’ wage gap: insights from German members of parliament," Public Choice, Springer, vol. 156(3), pages 653-676, September.
    7. Panizza, Ugo & Qiang, Christine Zhen-Wei, 2005. "Public-private wage differential and gender gap in Latin America: Spoiled bureaucrats and exploited women?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(6), pages 810-833, December.
    8. Antón, José-Ignacio & Muñoz de Bustillo, Rafael, 2013. "Public-private sector wage differentials in Spain. An updated picture in the midst of the Great Recession," MPRA Paper 48897, University Library of Munich, Germany.
    9. Heitmueller, Axel, 2004. "Public-Private Sector Wage Differentials in Scotland: An Endogenous Switching Model," IZA Discussion Papers 992, Institute of Labor Economics (IZA).
    10. Rebekka Christopoulou & Vassilis Monastiriotis, 2014. "The Greek Public Sector Wage Premium before the Crisis: Size, Selection and Relative Valuation of Characteristics," British Journal of Industrial Relations, London School of Economics, vol. 52(3), pages 579-602, September.
    11. Siminski, Peter, 2008. "What Would the Average Public Sector Employee be Paid in the Private Sector?," Economics Working Papers wp08-05, School of Economics, University of Wollongong, NSW, Australia.
    12. repec:pra:mprapa:48888 is not listed on IDEAS
    13. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    14. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    15. Blunch, Niels-Hugo & Das, Maitreyi Bordia, 2007. "Changing norms about gender inequality in education : evidence from Bangladesh," Policy Research Working Paper Series 4404, The World Bank.
    16. Yun Liang & John Gibson, 2017. "Location or Hukou: What Most Limits Fertility of Urban Women in China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 527-540, September.
    17. Eric Solberg, 2004. "Occupational assignment, hiring discrimination, and the gender pay gap," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(1), pages 11-27, March.
    18. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    19. Böheim, René & Himpele, Klemens & Mahringer, Helmut & Zulehner, Christine, 2013. "The distribution of the gender wage gap in Austria : evidence from matched employer-employee data and tax records," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(1), pages 19-34.
    20. Rupi, Federico & Freo, Marzia & Poliziani, Cristian & Postorino, Maria Nadia & Schweizer, Joerg, 2023. "Analysis of gender-specific bicycle route choices using revealed preference surveys based on GPS traces," Transport Policy, Elsevier, vol. 133(C), pages 1-14.
    21. Zhang, Li & Sharpe, Rhonda Vonshay & Li, Shi & Darity, William A., 2016. "Wage differentials between urban and rural-urban migrant workers in China," China Economic Review, Elsevier, vol. 41(C), pages 222-233.
    22. Shiba Shankar Pattayat & Jajati Keshari Parida & Kirtti Ranjan Paltasingh, 2023. "Gender Wage Gap among Rural Non-farm Sector Employees in India: Evidence from Nationally Representative Survey," Review of Development and Change, , vol. 28(1), pages 22-44, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijlaec:v:62:y:2019:i:4:d:10.1007_s41027-019-00190-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.