25 Years IWH

Professor Dr Claus Schnabel

Professor Dr Claus Schnabel
Current Position

since 3/15

Research Professor

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

since 4/00

Professor of Economics

Friedrich-Alexander University Erlangen-Nuernberg

Research Interests

  • labour economics
  • labour relations
  • economic policy

Claus Schnabel cooperates with the IWH in particular in questions of firm entries and exits as well as on topics like wages and industrial relations. He is Professor of Economics at the Friedrich-Alexander University Erlangen-Nuernberg. His main research interests include the areas of empirical labour economics, industrial relations, and economic policy.

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 Claus Schnabel
Professor Dr Claus Schnabel
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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

Survival of Spinoffs and Other Startups: First Evidence for the Private Sector in Germany, 1976-2008

Daniel Fackler Claus Schnabel

in: IZA Discussion Paper Series, No. 7542 , No. 7542, 2013

Abstract

Using a 50 percent sample of all establishments in the German private sector, we report that spinoffs are larger and initially employ more skilled and more experienced workers than other startups. Controlling for these and other differences, we find that spinoffs are less likely to exit than other startups. We show that in West and East Germany and in all sectors investigated pulled spinoffs (where the parent company continues after they are founded) generally have the lowest exit hazards, followed by pushed spinoffs (where the parent company stops operations). The difference between both types of spinoffs is particularly pronounced in the first three years. Contrary to expectations, intra-industry spinoffs are not found to have lower exit hazards in our sample.

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