This paper establishes some stylized facts about the public educational system of two Brazilian states: Rio Grande do Sul (RS) and São Paulo (SP). First, this paper shows that teachers' wages are not related with their productivity because wages are mainly affected by tenure. Second, teachers' average wage as fraction of GDP is higher than the one paid in other countries considered example of educational achievements, i.e., there is no evidence that the wages paid in Rio Grande do Sul and São Paulo underpay its teachers, comparing with OCDE countries. Third, the average wage paid to teachers is inferior than the average benefit paid to retired teachers, and retirees represent a heavy burden on this states wage bill, above 50% at Rio Grande do Sul and 35% at São Paulo. Moreover, the paper shows this states retirement rules are extremely generous comparing with other countries. Fourth, the public teachers' wage compression is stronger than the one observed in the job market for workers' with a college degree in both states.
wages; teachers; public sector; incentives
