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 Universität Erlangen-Nürnberg

Research Interests

  • labour economics
  • labour relations
  • economic policy

Claus Schnabel joined the institute as a Research Professor in March 2015. His research focuses on empirical labour economics, industrial relations, and economic policy.

Claus Schnabel holds the position of Professor of Economics at Friedrich-Alexander Universität Erlangen-Nürnberg.

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Professor Dr Claus Schnabel
Professor Dr Claus Schnabel
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Publications

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Do Start-ups Provide Employment Opportunities for Disadvantaged Workers?

Daniel Fackler Michaela Fuchs Lisa Hölscher Claus Schnabel

in: Industrial and Labor Relations Review, forthcoming

Abstract

This article compares the hiring patterns of start-ups and incumbent firms to analyze whether start-ups offer relatively more job opportunities to disadvantaged workers. Using administrative linked employer–employee data for Germany that provide the complete employment biographies of newly hired workers, the authors show that young firms are more likely than incumbents to hire applicants who are older, foreign, or unemployed, or who have unstable employment histories, arrive from outside the labor force, or were affected by a plant closure. Analysis of entry wages shows that penalties for these disadvantaged workers, however, are higher in start-ups than in incumbent firms. Therefore, even if start-ups provide employment opportunities for certain groups of disadvantaged workers, the quality of these jobs in terms of initial remuneration appears to be low.

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Industrial Relations: Worker Codetermination and Collective Wage Bargaining

Steffen Müller Claus Schnabel

in: Jahrbücher für Nationalökonomie und Statistik, forthcoming

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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, No. 3, 2018

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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