Putting a price on tenure

Government employees in Brazil are granted tenure after three years on the job. Firing a tenured government employee is all but impossible, so tenure is a big employee benefit. But exactly how big is it? In other words: how much money is tenure worth to a government employee in Brazil? No one has ever attempted to answer that question. I do that in this paper. I use a modified version of the Sharpe ratio to estimate what the risk-adjusted salaries of government workers should be. The difference between actual salary and risk-adjusted salary gives us an estimate of how much tenure is worth to each employee. I find that in the 2005-2019 period the monthly value of tenure was R$ 3980 to the median federal government employee, R$ 1971 to the median state government employee, and R$ 500 to the median municipal government employee.