RETIREMENT AND THE LEISURE-INCOME TRADE-OFF: IMPLICATIONS TO THE HUMAN CAPITAL VALUE OF PUBLIC SECTOR EMPLOYEES / APOSENTADORIA E O TRADE-OFF ENTRE RENDA E LAZER: IMPLICAÇÕES PARA O VALOR DO CAPITAL HUMANO DE FUNCIONÁRIOS PÚBLICOS

AUTOR(ES)
DATA DE PUBLICAÇÃO

2005

RESUMO

What should we expect from public employees that retire at early ages: continue working or enjoy full leisure time? If they continue working, the Brazilian 1998 pension reform - that established minimum retirement age for public employees - reduces future income and increases current savings, as consumption is smoothed through time. If the answer is leisure, the reform implies additional work and savings decrease in consequence of future consumption transfer to the present. This is the case of leisure and consumption being complements in the utility function. We use a sample with 33,893 public employees from the PNAD database (1996 to 2002) to show that there was a decrease in saving relative to the military, which were not affected by the reform. Since work and leisure decisions rely on the market alternative wage, this result suggests that the private sector does not greatly value the human capital of public employees.

ASSUNTO(S)

aposentadoria setor publico capital humano public sector retirement human capital mercado de trabalho job requirement

ACESSO AO ARTIGO

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