Work

Assessing Input Legitimacy of Occupational Pensions in Europe

Year: 2024

Type: article

Abstract: ABSTRACT As private asset‐based welfare like funded occupational pension schemes gain importance, legitimacy concerns arise due to financial market downturns and low investment returns. This paper assesses their input legitimacy by distinguishing between individual‐direct and collective‐representative input possibilities in decision‐making processes. We argue that individual‐direct input possibilities decrease while collective‐representative input possibilities increase with occupational pensions' compulsion. To test these hypotheses, we compare voluntary occupational pension schemes in Austria, Spain, and Ireland with (quasi‐)mandatory schemes in the Netherlands and Denmark, using Germany as a test case due to recent reforms enhancing their importance. Our institutional analysis and novel survey reveal that compulsory occupational pensions are associated with lower individual‐direct and higher collective‐representative input possibilities. These findings underscore the critical role of participatory procedures in establishing legitimacy in private governance, suggesting they may strengthen public trust and satisfaction with non‐state governance.

Source: Regulation & Governance

DOI: 10.1111/rego.12647

Authors: Thomas Mayer, Tobias Wiß

Institution: Johannes Kepler University of Linz

Language: English

Topic: Social Policy and Reform Studies

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,270