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Professor Dr Steffen Müller

Professor Dr Steffen Müller
Current Position

since 10/14

Head of the Department of Structural Change and Productivity

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

since 10/14

Professor of Economics: Productivity and Innovations

Otto von Guericke University Magdeburg

since 5/20

Head of IWH Bankruptcy Research

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

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Research Interests
  • firm productivity
  • empirical labour economics
  • economic gap between East and West Germany

Since 2014, Steffen Müller has been a Professor of Economics at the Otto von Guericke University Magdeburg and the Head of the Department of Structural Change and Productivity at the Halle Institute for Economic Research (IWH). He is a Fellow at both the Institute of Labor Economics (IZA) and the Center for Economic Studies (CESifo), and an elected member of the Population Economics Committee and the Social Policy Committee of the German Economic Association (Verein für Socialpolitik). Additionally, he serves as a long-standing advisor to federal and state ministries. His research primarily addresses key issues in the labor market and economic inequality, with a particular focus on the effects of labor market power, as well as technological and structural change.

Originally from the Leipzig region, Steffen Müller studied economics at the University of Leipzig. In 2005, he moved to Friedrich-Alexander University Erlangen-Nuremberg, where he earned his doctorate in 2009. He completed his habilitation there in 2014, obtaining a teaching qualification in economics and econometrics. During this period, he also conducted extended research at the University of California, Berkeley, and Davis.

Your contact

Professor Dr Steffen Müller
Professor Dr Steffen Müller
- Department Structural Change and Productivity
Send Message +49 345 7753-708 Personal page LinkedIn profile

Publications

Citations
1319

Selected Publications

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Industry Mix, Local Labor Markets, and the Incidence of Trade Shocks

Steffen Müller Jens Stegmaier Moises Yi

in: Journal of Labor Economics, No. 3, 2024

Abstract

We analyze how skill transferability and the local industry mix affect the adjustment costs of workers hit by a trade shock. Using German administrative data and novel measures of economic distance we construct an index of labor market absorptiveness that captures the degree to which workers from a particular industry are able to reallocate into other jobs. Among manufacturing workers, we find that the earnings loss associated with increased import exposure is much higher for those who live in the least absorptive regions. We conclude that the local industry composition plays an important role in the adjustment processes of workers.

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The East-West German Gap in Revenue Productivity: Just a Tale of Output Prices?

Matthias Mertens Steffen Müller

in: Journal of Comparative Economics, No. 3, 2022

Abstract

East German manufacturers’ revenue productivity is substantially below West German levels, even three decades after German unification. Using firm-product-level data with product quantities and prices, we analyze the role of product specialization and show that the prominent “extended work bench hypothesis” cannot explain these sustained productivity differences. Eastern firms specialize in simpler product varieties generating less consumer value and being manufactured with less or cheaper inputs. Yet, such specialization cannot explain the productivity gap because Eastern firms are physically less productive for given product prices. Hence, there is a genuine price-adjusted physical productivity disadvantage of Eastern compared to Western firms.

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Explaining Wage Losses After Job Displacement: Employer Size and Lost Firm Wage Premiums

Daniel Fackler Steffen Müller Jens Stegmaier

in: Journal of the European Economic Association, No. 5, 2021

Abstract

This paper investigates whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We estimate losses in wages and firm wage premiums, the latter being measured as firm effects from a two-way fixed-effects wage decomposition. Using new German administrative data on displacements from small and large employers, we find that wage losses are to a large extent explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses strongly increase with pre-displacement employer size. This provides an explanation for large and persistent wage losses reported in previous displacement studies typically focusing on large employers, only.

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All Refereed Publications

Working Papers

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The Contribution of Employer Changes to Aggregate Wage Mobility

Nils Torben Hollandt Steffen Müller

in: IWH Discussion Papers, No. 19, 2024

Abstract

<p>Wage mobility reduces the persistence of wage inequality. We develop a framework to quantify the contribution of employer-to-employer movers to aggregate wage mobility. Using three decades of German social security data, we find that inequality increased while aggregate wage mobility decreased. Employer-to-employer movers exhibit higher wage mobility, mainly due to changes in employer wage premia at job change. The massive structural changes following German unification temporarily led to a high number of movers, which in turn boosted aggregate wage mobility. Wage mobility is much lower at the bottom of the wage distribution, and the decline in aggregate wage mobility since the 1980s is concentrated there. The overall decline can be mostly attributed to a reduction in wage mobility per mover, which is due to a compositional shift toward lower-wage movers.</p>

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Minimum Wages, Productivity, and Reallocation

Mirja Hälbig Matthias Mertens Steffen Müller

in: IZA Discussion Paper, No. 16160, 2023

Abstract

We study the productivity effect of the German national minimum wage by applying administrative firm data. At the firm level, we confirm positive effects on wages and negative employment effects and document higher productivity even net of output price increases. We find higher wages but no employment effects at the level of aggregate industry × region cells. The minimum wage increased aggregate productivity in manufacturing. We do not find that employment reallocation across firms contributed to these aggregate productivity gains, nor do we find improvements in allocative efficiency. Instead, the productivity gains from the minimum wage result from within-firm productivity improvements only.

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Minimum Wages, Productivity, and Reallocation

Mirja Hälbig Matthias Mertens Steffen Müller

in: IWH Discussion Papers, No. 8, 2023

Abstract

We study the productivity effect of the German national minimum wage combining administrative firm datasets. We analyze firm- and market-level effects, considering output price changes, factor substitution, firm entry and exit, labor reallocation, and short- versus long-run effects. We document higher firm productivity even net of output price increases. Productivity gains are persistent in manufacturing and service sectors. The minimum wage also increased manufacturing productivity at the aggregate level. Neither firm entry and exit nor other forms of employment reallocation between firms contributed to these gains. Instead, aggregate productivity gains from the minimum wage solely stem from within-firm productivity improvements.

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Browse all working papers

Topics

Insolvencies Social Mobility East Germany Policy Evaluation Productivity Labour Market
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