Privately optimal severance pay

This paper constructs an equilibrium matching model with risk-averse workers and incomplete contracts to study both the optimal private provision of severance pay and the consequences of government mandates in excess of the private optimum. The privately-optimal severance payment is bounded below by the fall in lifetime wealth resulting from job loss. Despite market incompleteness, mandated minimum payments significantly exceeding the private optimum are effectively undone by adjustment of the contractual wage, and have only small allocational and welfare effects

The 'indigenous native peasant' trinity: imagining a plurinational community in Evo Morales's Bolivia

Over the last two decades Latin America has been a laboratory for the implementation of new models of state and citizenship. In Bolivia the (neo)liberal multicultural paradigm dominant in the 1990s has recently been replaced by a plurinational paradigm, which implies a deepening of the decentralization process and the strengthening of rights for traditionally marginalized social sectors. This paper describes the process of construction of a plurinational ‘imagined community’ and, in particular, of one of its core narratives: The ‘indigenous native peasant’. I argue that the negotiation of this collective identity and its inclusion as one of the core ideas in the new constitution is the result of a contingent strategy in response to a highly conflictive scenario, which has not been, however, able to trigger a change in the way people identify themselves. Yet in recent years, social movements’ identities have been shaped by centrifugal forces. These forces should be understood as the result of a process of collective actors’ adaptation to institutional and regulatory reforms and contribute to explaining the increase of new intrasocietal conflicts linked to the redefinition of citizenship and territorial boundaries