ABSTRACT
Career choice is an important decision and is usually made in an environment full of uncertainties for relatively young and inexperienced people. In this study, we aimed to analyze the decision to choose between a career in a private company and another in a public agency, considering that there is flexibility to migrate from the private to the public sector, through a civil service exam. Therefore, we used the methodology of real options to model this exchange option, assuming that future gains in the private sector are uncertain. The results suggest that the option of joining the public career may have significant value in relation to the private one.
Keywords:
career choice; civil service exam; real options; binomial tree
