"Restricted public pension schemes and cuts in earnings-related pensions have increased the role of pension funds. However, it is unclear from previous studies how far financial market crises affect pension funds mediated by trade unions and employee participation. This article draws on institutionalist arguments to link different mechanisms of coordination of market economies to differences in pension systems, corporate and pension fund governance, investment strategies and thus the vulnerability of pension funds to financial market risks. There is higher vulnerability to financial market crises in liberal market economies with weak trade union influence and high equity exposure."

Support: Paper