Defrocking dualism: A new approach to defining industrial sectors

In this paper we argue that a division of the economy into core and periphery sectors does not do justice to the complexity of the structure of the U.S. economy. The dualistic approach is inadequate both theoretically and empirically. While the dual economy literature has utilized multiple concepts it has conceived of them as forming a single dimension. We develop additional concepts from the complex organizations literature and utilize this enlarged set of concepts in a truly multidimensional framework. We also present a new technique of categorization based on a combination of factor and cluster analyses. The resulting categorization is highly interpretable, and it is superior to previous operationalizations in that it fully reflects the multidimensionality of economic segmentation.