25 Years IWH

Professor Dr Boris Hirsch

Professor Dr Boris Hirsch
Current Position

since 12/16

Research Fellow at the Department of Structural Change and Productivity

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

since 08/16

Professor of Economics

Leuphana University of Lüneburg

 

 

Research Interests

  • labour markets
  • industrial relations
  • empirical labour economics

Boris Hirsch is a Research Fellow at the IWH since December 2016. His research interests lie in the theory and empirics of imperfectly competitive labour markets, empirical labour economics, industrial relations and migration.

Since August 2016 Boris Hirsch has been full professor of Economics, in particular Microeconometrics and Policy Evaluation, at the Leuphana University of Lüneburg. He studied economics at the University of Erlangen-Nuremberg and mathematics at the University of Hagen.

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Professor Dr Boris Hirsch
Professor Dr Boris Hirsch
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Publications

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Do Employers Have More Monopsony Power in Slack Labor Markets?

Boris Hirsch Elke J. Jahn Claus Schnabel

in: Industrial and Labor Relations Review, forthcoming

Abstract

This article confronts monopsony theory’s predictions regarding workers’ wages with observed wage patterns over the business cycle. Using German administrative data for the years 1985 to 2010 and an estimation framework based on duration models, the authors construct a time series of the labor supply elasticity to the firm and estimate its relationship to the unemployment rate. They find that firms possess more monopsony power during economic downturns. Half of this cyclicality stems from workers’ job separations being less wage driven when unemployment rises, and the other half mirrors that firms find it relatively easier to poach workers. Results show that the cyclicality is more pronounced in tight labor markets with low unemployment, and that the findings are robust to controlling for time-invariant unobserved worker or plant heterogeneity. The authors further document that cyclical changes in workers’ entry wages are of similar magnitude as those predicted under pure monopsonistic wage setting.

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Coming to Work While Sick: An Economic Theory of Presenteeism With an Application to German Data

Boris Hirsch Daniel S. J. Lechmann Claus Schnabel

in: Oxford Economic Papers, No. 4, 2017

Abstract

Presenteeism, i.e. attending work while sick, is widespread and associated with significant costs. Still, economic analyses of this phenomenon are rare. In a theoretical model, we show that presenteeism arises due to differences between workers in (healthrelated) disutility from workplace attendance. As these differences are unobservable by employers, they set wages that incentivise sick workers to attend work. Using a large representative German data set, we test several hypotheses derived from our model. In line with our predictions, we find that bad health status and stressful working conditions are positively related to presenteeism. Better dismissal protection, captured by higher tenure, is associated with slightly fewer presenteeism days, whereas the role of productivity and skills is inconclusive.

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Works Councils and Other Plant-specific Forms of Employee Participation – Substitutes or Complements?

Stefan Ertelt Boris Hirsch Claus Schnabel

in: Industrielle Beziehungen, No. 3, 2017

Abstract

Using data from the IAB Establishment Panel (2004-2013), this paper analyses the incidence, development and interdependence of works councils and other, typically managementinitiated forms of employee participation (such as round tables) in Germany. In the private sector, the incidence of works councils and other forms of participation is similar, but in very few establishments both bodies exist simultaneously. Econometric analyses based on recursive probit models indicate that partly different factors explain the existence of works councils and other forms of participation. Both bodies correlate negatively with respect to their incidence, foundation, and dissolution. This suggests that there exists a predominantly substitutive relationship between works councils and other forms of employee participation.

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Working Papers

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Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany

Boris Hirsch Steffen Müller

in: IWH Discussion Papers, No. 2, 2018

Abstract

This paper investigates the influence of industrial relations on firm wage premia in Germany. OLS regressions for the firm effects from a two-way fixed effects decomposition of workers’ wages by Card, Heining, and Kline (2013) document that average premia are larger in firms bound by collective agreements and in firms with a works council, holding constant firm performance. RIF regressions show that premia are less dispersed among covered firms but more dispersed among firms with a works council. Hence, deunionisation is the only among the suspects investigated that contributes to explaining the marked rise in the premia dispersion over time.

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