Government employees in Brazil are granted tenure after three years of taking their entrance exams . Firing a tenured government employee is all but impossible, so tenure is a big perquisite . But exactly how big is it?  No one has ever attempted to estimate the monetary equivalent of tenure for Brazilian government workers. We do that in this paper. We use a modified version of the Sharpe ratio to estimate what the risk-adjusted salaries of government workers should be. The difference between actual salary and risk-adjusted salary gives us an estimate of how much tenure is worth for each employee. We find that the median value of tenure is 4517 reais for federal government employees, 2560 reais for state government employees, and 672 reais for municipal government employees .
Government employees in Brazil are granted tenure after three years on the job . Firing a tenured government employee is all but impossible, so tenure is a big employee benefit . But exactly how big is it? In other words: how much money is tenure worth to a government employee in Brazil? No one has ever attempted to answer that question. I do that in this paper. I use a modified version of the Sharpe ratio to estimate what the risk-adjusted salaries of government workers should be. The difference between actual salary and risk-adjusted salary gives us an estimate of how much tenure is worth to each employee. I find that in the 2005-2019 period the monthly value of tenure was 3980 reais to the median federal government employee, 1971 reais to the median state government employee, and 500 reais to the median municipal government employee .
R
of taking their entrance exams
on the job
R
perquisite
employee benefit
A
In other words: how much money is tenure worth to a government employee in Brazil?
R
estimate the monetary equivalent of tenure for Brazilian government workers. We
answer that question. I
R
We
I
R
for
to
R
We find that the median
I find that in the 2005-2019 period the monthly
R
is 4517 reais for federal government employees, 2560 reais for state government employees, and 672 reais for municipal government employees
was 3980 reais to the median federal government employee, 1971 reais to the median state government employee, and 500 reais to the median municipal government employee