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The Public-Private Wage Gap in Brazil

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  • Foguel, Miguel N.
  • Gill, Indermit
  • Mendonça, Rosane
  • Barros, Ricardo Paes de

Abstract

Recent changes in public employment in Brazil generate costs to workers that leave this sector. In this study we investigate the wage loss that leaving public employees may experience if they were absorbed by the private sector. Using microdata from the Pesquisa Nacional por Amostra de Domicílios of 1995, we calculate the gross and controlled wage gaps between the two sectors. The results show that both wage gaps are relatively high, although significantly lower for the second measure. The latter indicates the presence of important differences in the composition of the labor force between the two sectors. In fact, public employees tend to be on average better educated, older and have longer tenure than the workers in the private sector. Also, the study shows that there is a significant heterogeneity within the public sector: the wage gap is higher for federal public employees, decreasing for the state and municipal levels. As mudanças que vêm ocorrendo no emprego público no Brasil acarretam diversos custos para os trabalhadores que saem desse setor. Neste trabalho investigamos a magnitude da perda salarial que os trabalhadores realocados do setor público para o privado podem experimentar. Utilizando os microdados da Pesquisa Nacional por Amostra de Domicílios (PNAD) de 1995, calculamos os hiatos salariais bruto e controlado entre esses setores. Os resultados obtidos mostram que esses hiatos salariais são relativamente altos, embora significativamente menores quando utilizamos a segunda medida. Essa última constatação indica a existência de diferenças na composição da força de trabalho entre os dois setores. De fato, os trabalhadores empregados no setor público tendem a ser em média mais escolarizados, mais velhos e possuir maior tempo de experiência no trabalho do que os trabalhadores empregados no setor privado. Outra constatação importante é a presença de uma significativa heterogeneidade dentro do setor público: o hiato salarial é maior para os empregados na esfe
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Foguel, Miguel N. & Gill, Indermit & Mendonça, Rosane & Barros, Ricardo Paes de, 2000. "The Public-Private Wage Gap in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 54(4), October.
    • Handle: RePEc:fgv:epgrbe:v:54:y:2000:i:4:a:782
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    Cited by:

    1. Cirera, Xavier & Martins-Neto, Antonio Soares, 2023. "Do innovative firms pay higher wages? Micro-level evidence from Brazil," Research Policy, Elsevier, vol. 52(1).
    2. Glomm Gerhard & Jung Juergen & Lee Changmin & Tran Chung, 2010. "Public Sector Pension Policies and Capital Accumulation in an Emerging Economy: The Case of Brazil," The B.E. Journal of Macroeconomics, De Gruyter, vol. 10(1), pages 1-40, June.
    3. Gabriela Miranda Moriconi & João S. Moura Neto & Nelson Marconi & Paulo Roberto Arvate, 2006. "Evidências Sobre O Comportamento Dos Governos Estaduais Na Determinação Dos Salários Dos Servidores Públicos No Brasil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 135, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Köllő, János, 2013. "A közszféra bérszintje és a magánszektorból átlépők szelekciója 1997-2008 között [Public-sector pay and flows from the private to the public sector]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 523-554.
    5. Raquel Rangel de Meireles Guimarães & Luisa Pimenta Terra & Anna Carolina Martins Pinto & Cibele Comini César, 2010. "Diferenciais Regionais No Retorno À Participação No Setor Público No Brasil, 2005," Anais do XIV Semin·rio sobre a Economia Mineira [Proceedings of the 14th Seminar on the Economy of Minas Gerais], in: Anais do XIV Seminário sobre a Economia Mineira [Proceedings of the 14th Seminar on the Economy of Minas Gerais], Cedeplar, Universidade Federal de Minas Gerais.
    6. Medeiros, Marcelo & Souza, Pedro H.G.F., 2013. "The State and income inequality in Brazil," Institute for Research on Labor and Employment, Working Paper Series qt584222f0, Institute of Industrial Relations, UC Berkeley.
    7. Gerhard Glomm & Juergen Jung & Changmin Lee & Chung Tran, 2009. "Public Sector Pension Policies and Capital Accumulation in Emerging Economies," Discussion Papers 2009-10, School of Economics, The University of New South Wales.
    8. Glomm, Gerhard & Jung, Juergen & Tran, Chung, 2009. "Macroeconomic implications of early retirement in the public sector: The case of Brazil," Journal of Economic Dynamics and Control, Elsevier, vol. 33(4), pages 777-797, April.
    9. Eva-Maria Egger, 2019. "Migrants leaving mega-cities: Where they move and why prices matter," WIDER Working Paper Series wp-2019-113, World Institute for Development Economic Research (UNU-WIDER).
    10. Baer, Werner & Coes, Donald V., 2001. "Privatization, regulation and income distribution in Brazil1," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(5), pages 609-620.

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