Pension funds, financial crisis and the mediating role of trade unions

What is it about?

Penions funds are vulnerable to financial market crises. This vulnerability differs across countries. It is higher in liberal market economies such as the United States and Great Britain and lower in coordinated market economies such as Germany and Denmark. Why? High trade union involvement in the set-up and administration of pension funds is associated with less risky investments, higher funding ratios and therefore lower vulnerability to financial market risks.

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