25 Years IWH

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

Research Interests

  • firm productivity
  • empirical labour economics
  • firm entry and exit dynamics

Since October 2014, Steffen Mueller is professor at the University of Magdeburg and head of the Department of Structural Change and Productivity at the Halle Institute for Economic Research (IWH). He is member of the standing committees for education economics, population economics, and social policy of the German Economic Association.

Steffen Müller studied economics at the University of Leipzig. At the Friedrich-Alexander-University Erlangen-Nuremberg, he worked as a research assistant for Professor Riphahn from 2005 till 2014 and received his doctoral degree in Economics in November 2009. During his PhD studies, Steffen Müller stayed for several months at the University of California in Davis. Following an invitation by David Card, he visited the University of California in Berkeley from September to December 2012. He finished his habilitation in June 2014.

Your contact

Professor Dr Steffen Müller
Professor Dr Steffen Müller
Leiter - Department Structural Change and Productivity
Send Message +49 345 7753-708

Publications

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Plant-level Employment Development before Collective Displacements: Comparing Mass Layoffs, Plant Closures and Bankruptcies

Daniel Fackler Steffen Müller Jens Stegmaier

in: Applied Economics, forthcoming

Abstract

This article analyzes the development of employment levels and worker flows before bankruptcies, plant closure without bankruptcies and mass layoffs. Utilizing administrative plant-level data for Germany, we find no systematic employment reductions prior to mass layoffs, a strong and long-lasting reduction prior to closures, and a much shorter shadow of death preceding bankruptcies. Employment reductions in closing plants, in contrast to bankruptcies and mass layoffs, do not come along with increased worker flows. These patterns point to an intended and controlled shrinking strategy for closures without bankruptcy and to an unintended collapse for bankruptcies and mass layoffs.

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Size of Training Firms and Cumulated Long-Run Unemployment Exposure – The Role of Firms, Luck, and Ability in Young Workers’ Careers

Steffen Müller Renate Neubäumer

in: International Journal of Manpower, forthcoming

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Why Is there Resistance to Works Councils In Germany? An Economic Perspective

Steffen Müller Jens Stegmaier

in: Economic and Industrial Democracy, forthcoming

Abstract

Recent empirical research generally finds evidence of positive economic effects for works councils, for example with regard to productivity and – with some limitations – to profits. This makes it necessary to explain why employers’ associations have reservations about works councils. On the basis of an in-depth literature analysis, this article shows that beyond the generally positive findings, there are important heterogeneities in the impact of works councils. The authors argue that those groups of employers that tend to benefit little from employee participation in terms of productivity and profits may well be important enough to shape the agenda of their employers’ organization and have even gained in importance within their organizations in recent years. The authors also discuss the role of deviations from profit-maximizing behavior like risk aversion, short-term profit-maximization and other non-pecuniary motives, as possible reasons for employer resistance.

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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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Explaining Wage Losses after Job Displacement: Employer Size and Lost Firm Rents

Daniel Fackler Steffen Müller Jens Stegmaier

in: IWH Discussion Papers, No. 32, 2017

Abstract

Why does job displacement, e.g., following import competition, technological change, or economic downturns, result in permanent wage losses? The job displacement literature is silent on whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We therefore estimate losses in wages and firm wage premiums. Premiums are measured as firm effects from a two-way fixed-effects approach, as described in Abowd, Kramarz, and Margolis (1999). Using German administrative data, we find that wage losses are, on average, fully explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses in wages and premiums are minor for workers displaced from small plants and strongly increase with pre-displacement firm size, which provides an explanation for the large and persistent wage losses that have been found in previous studies mostly focusing on displacement from large employers.

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Identifying Bankruptcies in German Social Security Data

Daniel Fackler Eva Hank Steffen Müller Jens Stegmaier

in: FDZ-Methodenreport, No. 10, 2017

Abstract

Many empirical studies about firm exits point out that it is important to distinguish between different types of closures, e.g., voluntary and involuntary liquidations. This report describes how exits due to bankruptcies can be identified in the German Establishment History Panel (BHP). In contrast to other closures, bankruptcies can be unambiguously regarded as indica-tion for economic failure and can therefore be interpreted as involuntary exits.

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