Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1457
The empirical evidence related to the public-private wage gap in Brazil indicates that workers from the Brazilian public sector earn, on average, higher wages than the private sector ones. This paper surveys three literatures related to this topic. First, it surveys the main studies related to public-private wage gap in Brazil. Second, it surveys the methods used in the literature to correct the problem of self-selection bias from workers, focusing primarily on studies about the Brazilian formal-informal wage gap. Most models used in this context are endogenous switching regression models. Finally, it attempts to map the great variety of international studies which estimate the public-private wage gap based on the controlled selection bias. The main results of the latter are presented in order to serve as basis for future studies about the public-private wage gap in Brazil.