Abstract:In this paper, we investigate whether globalization has affected workers' bargaining power in the Belgian manufacturing industry over the period 1987-1995 using a sample of more than 20,000 firms. We find little evidence of international trade and inward foreign direct investment having an impact on the workers' bargaining power. We find some evidence that technological change has a positive impact on the workers' bargaining power. JEL no. C23, D21, F16, F23, J50, L13

The impact of trade and technology in the European case is assessed. A framework is developed which incorporates employment effects of (i) export expansion (ii) import competition and (iii) labour-saving productivity improvements. In this context, evidence is found for the hypothesis that international trade induces adjustments in technology.