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Economic Clusters and Inequalities

Centre de Recherche en Economie Appliquée à la Mondialisation - ROUEN - 2109

This project seeks to identify new mechanisms behind the relationship between inequality and urbanization. It will focus on understanding the role of the labour market. Indeed, the models developed within the framework of the New Geographical Economy model a labour market operating according to the hypothesis of Pure and Perfect Competition. However, the conditions of wage negotiations can affect equilibrium relations observed: the small number of actors interacting on these markets can lead to distortions of the competitive environment generally retained in negotiation models (monopsony power especially). Introducing imperfections into how the labour market operates can lead to the appearance of income distributions which vary according to the size of the markets.