Turkish clothing in Amsterdam: the rise and fall of a perfectly competitive labour market

While the Dutch textile industry declined rapidly, Turkish entrepreneurs created a growing industry for fashion goods with highly flexible demand in an informal sector that was initially tolerated by the authorities and attracted many undocumented immigrants. It led to the unusual spectacle of a labour market visibly in perfect competition; predictions of that model are clearly supported. Crackdown of the authorities led to the demise of the sector: production, capital, and labour all proved internationally mobile.