Sixty years after Titmuss: New findings on occupational welfare in Europe

Abstract

AbstractFollowing the seminal work of Richard Titmuss, who coined the term occupational welfare (OW) 60 years ago, the article approaches OW provision in Europe today. We first define OW as the sum of extra‐statutory social benefits and services provided by employers and/or trade unions as a result of employment. We then look at its recent evolution: OW expenditure and coverage have been increasing significantly in Europe since the 1990s. While pensions are still the main policy area of OW, the latter has also advanced in other social protection areas (e.g., health insurance, reconciliation). This has led to four different ideal types of OW—defined on the base of their organizing principle (voluntarism vs. collectivism) and the level of OW scheme coverage and expenditure. By looking at the main drivers of OW, the analysis has found no evidence of a “crowding out” effect between public welfare and OW. Collective bargaining, national political economy, and the timing of reforms prove to be important factors explaining the OW development. As for the present and future of OW, dualization is a major risk. At present, the main fault lines created by OW follow sectoral, industry, company size, and occupational group lines. To avoid the worsening of inequalities originated by OW, even in those countries which were able in the past to avoid dualization, strong industrial relations may play a key role. The article concludes with some suggestions on the agenda of future OW research.