O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DO USUÁRIO VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR.MARCELO RODRIGUES DOS SANTOSBettoni, Luis G.2024-02-072024-02-0720211556-5068https://repositorio.insper.edu.br/handle/11224/6409In many countries the structure of wages and the labor law legislation are completely different for public and private sector employees. In this paper, we develop a general equilibrium overlapping generations model to study the effect of such differences on household savings and labor supply. To conduct our analysis, first we use microdata from two Brazilian household surveys to document that civil servants save and work significantly less than their counterparts in the private sector. Second, we use matched employer-employee micro-data from Brazil (RAIS) to document differences between the two sectors in terms of wage and unemployment risk. Then, we calibrate the model to be consistent with micro and macro evidence for Brazil. Our counterfactual exercises show that differences in wages characteristics and labor law legislation accounts for nearly 70\% of the gap in savings between civil servants and private sector workers, and 57\% of the gap in labor supply. In addition, we find that eliminating those differences can produce sizeable increase on aggregate savings, employment and welfare.38 p.DigitalInglêsPublic sector employmentHousehold savingsLabor supplyworking paper10.2139/ssrn.3799253