Escolaridade e o diferencial de rendimentos entre o setor privado e o setor público no Brasil

We study the determinants of the public-private earnings gap for different levels of schooling of Brazilian workers. First, using the current earnings as the variable of interest, we estimate that less educated people receive higher earnings in the public sector (i.e., the earnings gap is favorable to the public sector). On the other hand, for workers with higher schooling, the earnings gap disappears or becomes favorable to the private sector. In addition, we consider the different retirement regimes in Brazil by creating the variable Present Value of Work Contract (PVWC). This variable is a measure of the lifetime earnings for each individual in our database. In contrast to the results from the current earnings analysis, we found that the PVWC gap is favorable to the public sector even for the highest educated group of workers.