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Subcontracting and the Creation of Inequality in the Dutch Clothing Industry 1980-1992


  • Dirk H. M. Akkermans

    (University of Groningen, the Netherlands,


The paper analyzes a dual industry structure and its effects as hypothesized by segmentation theory. A dual industry structure refers to the simultaneous existence of two groups of firms within an industry which differ in terms of bargaining power and product and labor market performance: sales and job fluctuation levels should be higher in the dominated group, and job security lower. Empirical analysis of the clothing industry in the Netherlands for the period 1980-1992 confirms the hypotheses for the largest part. JEL classifications: J42, L14, L11

Suggested Citation

  • Dirk H. M. Akkermans, 2011. "Subcontracting and the Creation of Inequality in the Dutch Clothing Industry 1980-1992," Review of Radical Political Economics, Union for Radical Political Economics, vol. 43(2), pages 230-252, June.
  • Handle: RePEc:sae:reorpe:v:43:y:2011:i:2:p:230-252

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    dual labor market; subcontracting; sales fluctuation; job security;

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms


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