25 Years IWH

Professor Dr Lutz Schneider

Professor Dr Lutz Schneider
Current Position

since 4/13

Research Professor

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 2013

Professor of Economics

University of Applied Sciences and Arts Coburg

Research Interests

  • applied microeconometrics
  • behavioral economics

Professor Lutz Schneider contributes to the ongoing activities of the IWH Research Group on The Impact of Institutions and Social Norms on Preferences and Behavior. He is Professor of Economics at the University of Applied Sciences and Arts Coburg. Until 2012 he was a post-doc researcher at the IWH. His main research areas centre on demography, human capital, migration, regional economics and microeconometrics.

On this website, publications resulting from cooperation with the IWH are listed. A complete list of publications is available on the author's website.

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Professor Dr Lutz Schneider
Professor Dr Lutz Schneider
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Publications

Informal Social Networks and Spatial Mobility

Peter Bönisch Lutz Schneider

in: Post-Communist Economies , 2010

Abstract

Individuals’ preferences in transition regions are still shaped by the former communist system. We test this ‘communist legacy’ hypothesis by examining the impact of acculturation in a communist regime on social network participation and, as a consequence, on preferences for spatial mobility. We focus on the paradigmatic case of Eastern Germany, where mobility intentions seem to be substantially weaker than in the Western part. Applying an IV ordered probit approach we first find that Eastern people acculturated in a communist system are more invested in locally bounded informal social capital than Western people. Second, we confirm that membership in such locally bounded social networks reduces the intention to move away. Third, after controlling for the social network effect the mobility gap between East and West is substantially reduced. Low spatial mobility of the Eastern population, we conclude, is to an important extent attributable to a social capital endowment characteristic of post-communist economies

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The Social Capital Legacy of Communism-results from the Berlin Wall Experiment

Peter Bönisch Lutz Schneider

in: European Journal of Political Economy , No. 32, 2013

Abstract

In this paper we establish a direct link between the communist history, the resulting structure of social capital, and attitudes toward spatial mobility. We argue that the communist regime induced a specific social capital mix that discouraged geographic mobility even after its demise. Theoretically, we integrate two branches of the social capital literature into one more comprehensive framework distinguishing an open type and a closed type of social capital. Using the German Socio-Economic Panel (GSOEP) we take advantage of the natural experiment that separated Germany into two parts after the WWII to identify the causal effect of social capital on mobility. We estimate a three equation ordered probit model and provide strong empirical evidence for our theoretical propositions.

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Relative Deprivation and Migration Preferences

Walter Hyll Lutz Schneider

in: Economics Letters , No. 2, 2014

Abstract

In this letter, we overcome the existing shortages with respect to the assignment of individuals to reference groups and are the first to show that individual aversion to relative deprivation plays a decisive role in shaping migration preferences.

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Working Papers

Social Capital and Migration Preferences - An Empirical Analysis for the Case of the Reunified Germany

Peter Bönisch Lutz Schneider Walter Hyll

in: Grincoh Working Papers July 2013 , 2013

Abstract

We focus on the relevance of different types of social capital on migration intentions in the context of shrinking regions. On the one hand, formal social capital characterised by weak ties without local roots is supposed to drive selectivity and outmigration. On the other hand, informal social capital stressing strong ties to friends, relatives or neighbours might hinder migration. In our regression results we do not find an effect of shrinking regions on mobility intentions. Thus, living in a shrinking area is by itself not a reason to move away or to invest less in social capital. However, if an individual considers to move away she reduces her participation in informal and formal networks. Individuals characterised by strong informal ties, i.e. strong relationships to friends, rel atives or neighbours show a significantly lower probability of moving away. And, more qualified types of social capital as participation in local politics or initiatives seem to encourage spatial mobility.

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Social Comparisons and Attitudes towards Foreigners. Evidence from the ‘Fall of the Iron Curtain’

Walter Hyll Lutz Schneider

in: IWH Discussion Papers , No. 12, 2016

Abstract

We exploit the natural experiment of German re-unification to address the question whether distress from social (income) comparisons results in negative attitudes towards foreigners. Our empirical approach rests upon East German individuals who have West German peers. We use the exogenous variation of wealth of West German peers shortly after the fall of the Berlin Wall as an instrument to identify the effect of distress from social comparisons on East Germans’ attitudes. We find robust evidence that East Germans expose strong negative attitudes towards foreigners, particularly from low-wage countries, if they worry about their economic status compared to better-off peers.

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Social Distress and Economic Integration

Walter Hyll Lutz Schneider

in: IWH Discussion Papers , No. 21, 2016

Abstract

We analyze whether social distress from income comparisons affects attitudes towards the integration of economies. Using Germany’s division as natural experiment, we find that East Germans’ feelings of relative deprivation with respect to better-off West Germans led to significantly more support for the upcoming German re-unification.

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