How Rich Countries Cope with Deindustrialization

Patrick Emmenegger, Silja Häusermann, Bruno Palier and Martin Seeleib-Kaiser

in The Age of Dualization

Published in print January 2012 | ISBN: 9780199797899
Published online May 2012 | e-ISBN: 9780199933488 | DOI:

Series: International Policy Exchange Series

How Rich Countries Cope with Deindustrialization

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This conclusive chapter reviews the comparative evidence accumulated throughout the book on the new, widening and deepening divides between insiders and outsiders. It answers two key questions: who are the outsiders? And what is driving dualization? Most importantly, the comparative evidence discussed in this chapter points to the crucial importance of political choice in shaping the social outcomes of deindustrialization. Hence, insider-outsider divides are not a straightforward consequence of deindustrialization, but rather the result of policy. Finally, the chapter speculates about the future development of dualized societies: are they on a road to ever more inequality and social exclusion, or can we expect new equilibria to last? It argues that several mechanisms - including institutional feedback, the occupational segmentation of labor markets and the weak political mobilization of outsiders – may stabilize the new inequalities brought about by dualization.

Keywords: dualization; insider outsider divide; political choice; political mobilization; political representation; institutional feedback; comparative method

Chapter.  7351 words. 

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