O prêmio salarial do setor público na Paraíba e no Brasil (2011 a 2021)

Abstract

The public sector plays a prominent role in the Brazilian economy, as it has a significant share in job creation and income generation. Based on this, the general objective of this study is to estimate and analyze the determinants of the wage premium in the public sector in Paraíba and Brazil from 2011 to 2021. In turn, the specific objectives can be divided into: (i) analyzing the evolution of public and private employment in the labor market and estimating the wage premium in the public sector, in the three studied levels (municipal, state, and federal); and (ii) investigating the factors that determine the wage premium of municipal public servants, using the methodology proposed by Oaxaca-Blinder. The approach of this work will be quantitative, with data obtained from public sources, including the Annual List of Social Information (RAIS), the Public Finance Information System (FINBRA), the Brazilian Institute of Geography and Statistics (IBGE), and the Transparent National Treasury, and the application of the Oaxaca-Blinder decomposition (1973). This study aims to understand the wage differences between public and private sector workers in the Brazilian labor market by analyzing the wage premium in the public sector and investigating the determinants of this wage premium. The hypothesis assumed is that the wage premium in the public sector increases as the level of public authority rises. In general, the results obtained indicate that: (i) the wage premium in the public sector increases as the level of public authority rises: municipal, state, and federal; (ii) factors such as the volume of intermunicipal transfers contribute to the wage premium of municipal public servants. Finally, it is believed that this study contributes to enriching the existing literature on the labor market, reducing the knowledge gap related to the topic.