Uma nota sobre efeitos da Lei de Responsabilidade Fiscal e das transferências governamentais sobre emprego e salários públicos municipais

This study examined whether limiting spending and earmarking revenues influence municipal hiring and compensation decisions for public employees. Based on panel regressions with data from Brazilian municipalities, the results indicated: i) expansive effects on municipal public employment resulting from non-compliance with the Fiscal Responsibility Law (LRF), as well as on total remuneration, but not on the average salary; and ii) expansive effects on public remuneration associated with unconditional transfers, which suggests that linking intergovernmental transfers to specific expenses is an instrument to be considered if the goal is to control personnel expenses.