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BRAZILIAN STATE

THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATEAN ANALYSIS OF PUBLIC EMPLOYMENT

THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATEAN ANALYSIS OF PUBLIC EMPLOYMENT

Rio de Janeiro, 2016

FGV/DAPP

DirectorMarco Aurelio Ruediger

DAPP+55 (21) 37994300 | www.dapp.fgv.br | [email protected]

Head OfficePraia de Botafogo 190, Rio de Janeiro | RJ, CEP 22250-900 ou Caixa Postal 62.591 CEP 22257-970 | Tel: (21) 3799-5498 | www.fgv.br

Founding PresidentLuiz Simões Lopes

PresidentCarlos Ivan Simonsen Leal

Vice-PresidentsSergio Franklin Quintella, Francisco Oswaldo Neves Dornelles e Marcos Cintra Cavalcante de Albuquerque

FGV is an institution with a philanthropic, educational, technical and scientific nature, created on 20 December 1944 as a private entity, whose aim is to act in a broad manner in all questions with a scientific nature, with an emphasis on the social sciences, administration, law, and economy, contributing to the socio-economic development of the country.

TEAM

IMPLEMENTATION TEAMCoordinationMarco Aurelio Ruediger

ResearchersAmaro GrassiMiguel OrrilloRafael Martins de Souza

Graphic projectRebeca Liberatori Braga

BRAZILIAN STATE

THE STRUCTURE OF THE BUREAUCRACY OF THE

BRAZILIAN STATEAN ANALYSIS OF PUBLIC EMPLOYMENT

5 | DEPARTMENT OF PUBLIC POLICY ANALYSIS

The Structure of the Bureaucracy of the Brazilian State is the first study in a series by FGV/DAPP about Brazilian bureaucracy, produced on the basis of data about the various levels and administrative spheres of public employment in Brazil. The aim of this series of studies is to shed some light on the public service in the three levels of the Federation and also among the three powers, offering contributions to the debate about the size of the Brazilian state and the quality of the services provided by this bureaucratic body, in a comparative perspective with the rest of the world. It is thus intended to seek responses to the most recurrent concerns in the Brazilian public debate, above all at a moment when discussions about reforms in the Brazilian state and its bureaucracy have returned to center stage.

Among the results found in this first stage of the research, one that most stood out was related to the role of municipalities within the federative pact currently in force in Brazil. According to the survey, the number of municipal employment positions grew by 210% between 1998 and 2014, tripling the total employees at this level. Per capita annual expenditure (how much each Brazilian pays to maintain this structure) rose from R$216 to R$671. This growth is a reflection, amongst other things, of the municipalization of services stipulated in the 1988 Constitution, highlighting an overload of responsibilities at the tip of the federative structure. In this context, municipalities are induced to hire more public employees in order to meet the growing demand of society for high quality public services, but pay badly due to their reduced fiscal capacity in comparison with the other governmental spheres.

Finally, the study makes a comparison between the number of municipal public employees per thousand inhabitants in every Brazilian state capital. There is also a special focus on the city of Rio de Janeiro, especially the comparison of data on personnel expenditure with the other Brazilian state capitals. The data was published at the beginning of September 2016 in “O Globo” as part of a partnership between FGV/DAPP and the newspaper to cover the municipal elections.

OVERVIEW

6|THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT

Federal MunicipalState

ServidoresPúblicos-Brasil

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Brasil

mili

on

NíveisdeAdministraçãoPública

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Federal Estadual Municipal

mili

on

This section, the first of this study, shows the evolution of public employment between 1998 and 2014, based on data from RAIS, which is part of the Ministry of Labor. Presented in the figures below is data about the number of general public employees and per administrative level (federative entity).

The charts below show the growth in the amount of public employees in Brazil between 1998 and 2014. During this period, there was an increase of 71.6% in the number of public employees in Brazil. Municipalities had the steepest rise (around 210%), almost tripling in size.

EVOLUTION OF PUBLIC EMPLOYMENT

Number of employees(1998-2014)

Source: MTE/RAIS(1998-2014)Prepared by: FGV/DAPP

Public Employees – Brazil

Levels of Public Administration




26

28

30

32

34

36

38

40

42

44

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


thou

sand


10

20

30

40

50

60

70

80

90

100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


thou

sand

The following figures show the development of annual average earnings (payment) per position. It can be seen that in Brazil, as a whole, there was an increase in the average earnings of public employees after 2003, reaching the level of R$43,500 in 2014. According to the survey, federal employees are the best paid, while municipal receive the lowest earnings.

Annual earnings per position (1998-2014)

Source: MTE/ RAIS(1999-2014)Prepared by: FGV/DAPP






30

40

50

60

70

80

90

100

110

120

130

140

150

160

170

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


bilio

n


140

160

180

200

220

240

260

280

300

320

340

360

380

400

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


bilio

n

Over the years, annual expenditure on wages increased at all levels of public administration, in all regions of the country, and in the three spheres of federal public administration. The figures below show the growth of this expenditure. Between 1999 and 2014, there was a total increase of around 167% (in real values), rising from R$146.56 billion to R$391.79 billion. In the comparison between the federative bodies, states have the highest expenditure, but municipalities had the highest rate of growth, according to the survey.

Annual expenditure on public employee pay(1999-2014)

Source: MTE/ RAIS(1999-2014)Prepared by: FGV/DAPP






31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


Empl

oym

ent p

ositi

ons


2

4

6

8

10

12

14

16

18

20

22

24

26

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


Empl

oym

ent p

ositi

ons

In the attempt to measure the efficiency of Brazilian public employment between 2000 and 2014, two indexes were analyzed: (a) the distribution of the number of Public Employees among the Brazilian population; (b) annual per capita expenditure with the public machine, in other words, per Brazilian citizen. First, the number of positions per each thousand inhabitants it is examined.

In Brazil, the proportion increased by 41.85% between 2000 and 2014. In relation to administrative levels, the number of municipal employees more than doubled during the same period, reaching 24 employees per thousand inhabitants. State and federal employees had a slower rate of growth over the years.

Employment positions per thousand inhabitants(2000-2014)

Source: MTE/ RAIS(2000-2014) , IBGEPrepared by: FGV/DAPP






900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ServidoresPúblicos-BrasilNíveisdeAdministraçãoPública

200

250

300

350

400

450

500

550

600

650

700

750

800

850

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


In relation to annual per capita expenditure with public employee payroll, there was growth a higher than 100% between 2000 and 2014, rising from R$932.40 to R$1932.20.

Annual per capita expenditure(2000-2014)

Source: MTE/ RAIS(2000-2014), IBGEPrepared by: FGV/DAPP




ServidoresPúblicos

75.33%

13.78%

10.89%

Estatutário NãoEfetivo CLT

Municipal

63.86%

17.66%

18.48%

Estatutário NãoEfetivo CLT

Statutory CLTNon-Permanent

The figure below shows that at least three out of four public employees in Brazil are contracted in a statutory system. Municipal administration is the sphere with the lowest percentage of statutory employees (63.9%), and the highest proportion of CLT and non-permanent employees, which suggests that municipal administrators are searching for alternatives to increase services provided.

Contracting systems (2014)

Source: MTE/ RAIS(2014)Prepared by: FGV/DAPP

Public Employees

Municipal

Statutory CLTNon-Permanent


Area

Area

Executivo95.29%

Legislativo2.07%

Autarquias1.64%

Outros0.99%

Executivo Legislativo Autarquias Outros

Administrativespheres

Administrativespheres

Executive95.29%

Legislature2.07%

Agencies1.64%

Others0.99%

Executive Legislature Agencies Others

The second part of the study presents a brief profile of municipal public employees focusing on the city of Rio de Janeiro. Comparative methodology is still used, but now between Brazilian capitals. Firstly, we present the different administrative spheres of Brazilian municipal employees in 2014. As was to be expected, it can be observed that 95.29% of municipal employees are from the Executive. Shortly afterwards, two important variables are presented to compare the Brazilian state capitals: employment positions per thousand inhabitants and average income. This short analysis can also be visualized per region of Brazil. Finally, we trace a profile of the municipal employees in Rio working for the Executive.

MUNICIPAL EMPLOYEE PROFILE



PastGDP

JoãoPessoa

Vitória

Palmas

PortoVelho

BoaVista

Goiânia

Cuiabá

SãoLuís

Macapá

Curitiba

Teresina

CampoGrande

Natal

Aracaju

Florianópolis

Maceió

Recife

RiodeJaneiro

BeloHorizonte

Belém

SãoPaulo

RioBranco

Manaus

PortoAlegre

Fortaleza

Salvador

Brasília

0 5 10 15 20 25 30 35 40

38,88

35,35

32,68

26,2

23,46

21,33

21,26

20,83

18,98

18,45

18,36

17,49

16,83

16,52

16,39

15,48

15,25

14,33

13,46

12,44

12,22

11,94

11,41

11,2

10,72

7,47

0

Positions

Norte

Palmas

PortoVelho

BoaVista

Macapá

Belém

RioBranco

Manaus

0 5 10 15 20 25 30 35 40

32,68

26,2

23,46

18,98

12,44

11,94

11,41

Positions

This section reveals the distribution of municipal employees from the Executive in Brazilian state capitals, offering a panorama of public employment in these municipalities. The first figures show the number of employment positions per thousand inhabitants; the second ones, the average earnings of public employees per capital. It can be noted that the city of Rio de Janeiro is the second city in the Southeast region in the number of employment positions per thousand inhabitants. The city of Vitória occupies the highest rank in this index. On the other hand, the employment positions which correspond to these cities are the lowest paid among the cities of the southeast region. The municipal employes in Rio have average earnings of R$3.450,00.

Distribution of municipal employeesPositions per thousand inhabitants - 2014


Brazil

North


Brasil

PortoAlegre

Florianópolis

SãoPaulo

CampoGrande

BeloHorizonte

Salvador

Curitiba

Fortaleza

Manaus

RiodeJaneiro

Aracaju

Vitória

Teresina

Recife

RioBranco

Maceió

Goiânia

Natal

Palmas

Belém

Macapá

PortoVelho

Cuiabá

SãoLuís

BoaVista

JoãoPessoa

Brasília

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5

5,97

4,76

4,05

4,04

3,95

3,91

3,82

3,72

3,62

3,45

3,17

3,14

3,14

3,04

2,86

2,85

2,84

2,83

2,80

2,76

2,66

2,62

2,38

2,35

2,03

1,61

0

Norte

Manaus

RioBranco

Palmas

Belém

Macapá

PortoVelho

BoaVista

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5

3,62

2,86

2,8

2,76

2,66

2,62

2,03

Distribuição de servidores municipaisAverage earnings - 2014

Source: MTE/ RAIS(2014)EPrepared by: FGV/DAPP

Brazil

North


Nordeste

JoãoPessoa

SãoLuís

Teresina

Natal

Aracaju

Maceió

Recife

Fortaleza

Salvador

0 5 10 15 20 25 30 35 40

38,88

20,83

18,36

16,83

16,52

15,48

15,25

10,72

7,47

Positions

CentroOeste

Goiânia

Cuiabá

CampoGrande

0 5 10 15 20 25 30 35 40

21,33

21,26

17,49

Positions

Sudeste

Vitória

RiodeJaneiro

BeloHorizonte

SãoPaulo

0 5 10 15 20 25 30 35 40

35,35

14,33

13,46

12,22

Positions

Sul

Curitiba

Florianópolis

PortoAlegre

0 5 10 15 20 25 30 35 40

18,45

16,39

11,2

Positions


Northeast

Center-west

Southeast

South


Nordeste

Salvador

Fortaleza

Aracaju

Teresina

Recife

Maceió

Natal

SãoLuís

JoãoPessoa

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5

3,91

3,72

3,17

3,14

3,04

2,85

2,83

2,35

1,61

CentroOeste

CampoGrande

Goiânia

Cuiabá

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5

4,04

2,84

2,38

Sudeste

SãoPaulo

BeloHorizonte

RiodeJaneiro

Vitória

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5

4,05

3,95

3,45

3,14

Sul

PortoAlegre

Florianópolis

Curitiba

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5

5,97

4,76

3,82


Northeast

Center-west

Southeast

South


Sexo

76.85%

23.15%

Feminino MasculinoEscolaridade

0.34%

1.40%

5.03%

5.59%

5.68%

81.97%

EnsinoMédioIncompleto Atéo5ªanoIncompletodoEnsinoFundamental EnsinoFundamentalCompleto

Do6ªao9ªanoIncompletodoEnsinoFundamental EducaçãoSuperiorIncompleta EducaçãoSuperiorCompleta

Finally, the figures below show the profile of public employees from the Executive in the municipality of Rio de Janeiro, focusing on gender, education, age group, type of contracting, income, and time employed.

Profile of public employees in the municipality of Rio de Janeiro2014


Gender

Education

Female

Incomplete Second Level

6 – 9 Grade Incomplete Fundamental Education

Complete Fundamental Education

Complete Third Level

Male

Up to 5th Grade Incomplete Fundamental Education

Incomplete Third Level


Idade

0.94%

16.28%

26.30%

33.80%

22.68%

18|--25 25|--35 35|--45 45|--55 55ou+

Regime

98.32%

1.68%

Estatutário NãoefetivoSource: MTE/ RAIS(2014)

Prepared by: FGV/DAPP

Age

Type of contract

18|--25 35|--4525|--35 45|--55 55 or +

Statutory Non-Permanent


Faixarenda

10.56%

44.87%

39.60%

3.48%

1.49%

0|--2 2|--4 4|--10 10|--20 20ou+

Tempoemprego

28.16%

11.83%

10.72%

16.04%

7.70%

6.74%

10.90%

7.91%

0|--4 4|--8 8|--12 12|--16 16|--20 20|--24 24|--28 28ou+Source: MTE/ RAIS(2014)

Prepared by: FGV/DAPP

Average income band (Minimum Wages)

Time in employment (years)

0|--2

0|--4 20|--24

4|--10

8|--12 28 or +

2|--4

4|--8 24|--28

10|--20

12|--16

20 or +

16|--20


The data used in this study is extracted from RAIS (2008-2014) and the principal research unit in a large part of this work is considered to be each employment position active in December of each year. Evidentially, when it was necessary to research the balance of employment positions, we considered the differences between the positions at the start and end of each year. To obtain the population in each region of the study, the IBGE population projection was used.

The monetary values of the historic series were deflated to values of December 2014.

According to the RAIS 2014 manual, adopted as public employees were those workers governed by the Single Judicial Regime (federal, state, and municipal) and the military, linked to the Single Pension System; employees governed by the Single Judicial Regime (federal, state, and municipal) and the military, linked to the General Social Security System, and non-permanent public employees (who can be dismissed ad nutum or who were hired by special legislation, not governed by the CLT). Moreover, the base of our study was restricted to the employees of the three powers (Executive, Legislature, and Judiciary) together with employees from agencies and public foundations (whether subject to public or private law), in the three administrative levels (federal, state, and municipal).

RAIS provides the average income of each position. This variable was used to estimate the annual value spent on each position. For this, average income was multiplied by the number of months worked for each position.

The analysis in this research were carried out using R software.

MTE/RAISYears: 1998 - 2014http://www.rais.gov.br/

IBGEInstituto Brasileiro de Geografia e Estatísticahttp://www.ibge.gov.br/home/ http://www.ibge.gov.br/apps/populacao/projecao/

Central Bank of Brazilhttps://www3.bcb.gov.br/sgspub/localizarseries/localizarSeries.do?method=prepararTelaLocalizarSeries

METHODOLOGICAL NOTES

SOURCES

FGV/DAPPDepartment of Public Policy Analysis | Getulio Vargas Foundation

DIRECTORMarco Aurelio Ruediger

ResearchersAmaro GrassiMiguel Orrillo

Rafael Martins de Souza

TEAM

[email protected]

+55 (21) 3799.4300

INNOVATION FOR PUBLIC POLICIES

Documents

THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN …dapp.fgv.br/wp-content/uploads/2017/02/EN_A-estrutura-da-burocrac… · annual per capita expenditure with the public machine,