Globalization and Labour Market Segmentation: The Impact of Global Production Networks on Employment Patterns of German and UK Clothing Firms

Christel Lane and Jocelyn Probert

Chapter 8 in Multinationals, Institutions and the Construction of Transnational Practices, 2006, pp 184-212 from Palgrave Macmillan

Abstract: Abstract The clothing industry in developed economies was among the first to take on a global dimension, and is today geographically dispersed around the world (Dicken, 2003). As the industry has not been amenable to technological rationalization, its low capital and relatively high labour intensity1 have made it an obvious candidate for development in newly industrializing countries. Due to huge discrepancies in wage levels between developing and developed countries (Figure 8.1), firms in the latter have had to reorganize their value chain. The result has been the steadily increasing (in some European countries, almost total) outsourcing of production to lower-wage developing countries and drastic employment cuts in developed countries, particularly of semi-skilled jobs like sewing. Nevertheless, the clothing industry remains a significant employer.

Keywords: Informal Sector; German Firm; Clothing Industry; German Industry; Interview Note (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1057/9780230502307_8

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