Schäfer is professor emeritus at the University of Hamburg and former director of the Institute of Law & Economics.
Currently he is an affiliate professor at Bucerius Law School in Hamburg, Germany.
In 2012 the faculty of law of the Universidad de San Martín de Porres in Lima awarded him the title of an honorary professor, whilst in 2013 he was awarded the scholar prize of the European Association of Law and Economics.
The Latin American and Iberian Law and Economics Association awarded him the scholar prize in 2016.
His textbook "The Economic Analysis of Civil Law" (co-authored with Claus Ott) is broadly considered to be the leading textbook on the economic analysis of civil law,[according to whom?]