The battle for talent: globalisation and the rise of executive pay

Publishing date: 10 February 2009
Authors: Dalia Marin

This paper explores the role of globalisation in the rise of executive pay in Austria and Germany. According to Dalia Marin, firms more exposed to international competition engage in talent fairs to search and attract skilled workers. She also finds that seniority related pay varies for different levels of foreign competition suggesting that firms increase CEO pay when faced with the threat of losing their senior executives, while seniority in office itself does not lead to higher pay. These findings support the idea of a ‘war for talent‘ that is triggered by international trade.

About the authors

Dalia Marin

Dalia Marin joined Bruegel as a research fellow in October 2007. She holds the Chair in International Economics at the University of Munich.

Her research interests are in the area of international economics, corporate finance and the organisation of the firm, and emerging market economies.

Since obtaining her Habilitation in Economics from Vienna University of Economics she has been an Assistant Professor at the Institute for Advanced Studies in Vienna, Associate Professor at Humboldt University Berlin, and a visiting professor or visiting scholar at Harvard University, Stanford University, Stern School of Business, New York University, the International Monetary Fund, National Bureau of Economic Research in Massachusetts, the European University Institute, and at the Wissenschaftszentrum in Berlin.

Dalia Marin is also a fellow of the Centre for Economic Policy Research (CEPR), London, and Member of the International Trade and Organization Working Group of the National Bureau of Economic Research (NBER) in Cambridge. She has been Team Leader at the Russian European Center for Economic Policy in Moscow and has acted as a consultant for international organizations such as the European Bank for Reconstruction and Development, and the International Monetary Fund.