Determinants of salary inequality between Minas Gerais government careers

Abstract

This research investigates the determinants of salary differences among Minas Gerais government careers using a linear regression model. Explanatory variables were raised from different theoretical approaches to determine the salaries: human capital theory, market segmentation theory, discrimination theory, and sociology of professions, in addition to considering the specificities of the public sector. The choice of the Brazilian state of Minas Gerais is justified by its relevance in the country and the fiscal crisis experienced in recent years. The hypothesis is that salary differences in the public sector not only express education and work experience, but also typical distortions of socioeconomic and political-bureaucratic structures. The results corroborate the hypothesis and suggest that the relative salary structure in the public sector constitutes a concrete manifestation of the differences in political resources available to careers, the social prestige of professions, and structural aspects of gender inequality.

Keywords:
salary inequality; public sector; remuneration policy; careers