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

In: Multinationals, Institutions and the Construction of Transnational Practices

Author

Listed:
  • Christel Lane
  • Jocelyn Probert

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.

Suggested Citation

  • Christel Lane & Jocelyn Probert, 2006. "Globalization and Labour Market Segmentation: The Impact of Global Production Networks on Employment Patterns of German and UK Clothing Firms," Palgrave Macmillan Books, in: Anthony Ferner & Javier Quintanilla & Carlos Sánchez-Runde (ed.), Multinationals, Institutions and the Construction of Transnational Practices, chapter 8, pages 184-212, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50230-7_8
    DOI: 10.1057/9780230502307_8
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    Cited by:

    1. Garcia Calvo, Angela & Coulter, Steve, 2022. "Crisis, what crisis? Industrial strategies and path dependencies in four European countries after the crash," LSE Research Online Documents on Economics 106497, London School of Economics and Political Science, LSE Library.

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