Lecture Information:



A Nation of Poets and Thinkers:
Less so with Eastern Enlargement?

Berlin Lunchtime Meeting


SPEAKER: Dalia Marin, Professor of Economics (University of Munich and CEPR)


Date: 31 March 2004

Location: Max-Liebermann-Haus, Pariser Platz 7, 10117 Berlin


Many people in the European Union fear that Eastern Enlargement will lead to major job losses. More recently, these fears about job losses have extended to high skill labour and IT jobs. Prof. Dr. Marin examines with new firm level data whether these fears are justified for the two neighbouring countries of Eastern Enlargement Austria and Germany. She finds that Eastern Enlargement leads to surprising small job losses, because jobs in Eastern Europe do not compete with jobs in Austria and Germany. However, she also finds that multinational firms in Austria and Germany are outsourcing the most skill intensive activities to Eastern Europe taking advantage of cheap abundant skilled labour in Eastern Europe. Prof. Marin finds that firms' outsourcing activities to Eastern Europe are a response to a human capital scarcity in Austria and Germany which has become particular severe in the 1990s. She finds that high skilled jobs transferred to Eastern Europe account for 10 percent of Germany's and 48 percent of Austria's supply of university graduates in the 1990s. She then discusses what can be done to address the skill exodus to Eastern Europe.


Prof. Marin holds the Chair in International Economics at the University of Munich. She has been a visiting professor or visiting scholar at Harvard University, National Bureau of Economic Research, International Monetary Fund, Stanford University and at the Wissenschaftszentrum Berlin. She is a Research Fellow at the Centre for Economic Policy Research in London. She has been Team Leader at the Russian European Centre for Economic Policy in Moscow (1998-2000) and has acted as a consultant for the European Bank for Reconstruction and Development (EBRD), London and for The World Bank, Washington.