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...

This paper develops a dynamic general equilibrium model in which the public and the private sector interact in the labor market. Previous studies that analyze the labor market effects of public sector employment and wages have mostly assumed exogenous rules for public wage and public employment....