Unemployment Dispersion and City Configurations: Beyond the Bid Rent Theory

In the present article, I provide a simple urban theory where agents do not bid for land. In absence of this baseline mechanism, I show that the spatial allocation of agents is governed by a Nash equilibrium. I underline the role of asymmetric local congestion effects in insuring the existence and the uniqueness of such an equilibrium. I then use this new framework to account for spatial variation in unemployment within big cities. Namely, applying this setting in an urban search model, I demonstrate that the obtained framework can generate a large number of new city configurations in which the local unemployment rate behaves differently. I also determine conditions for which each configuration may appear. I finally prove, the existence and the uniqueness of a labor market equilibrium for each urban pattern and I draw a link between the latter and the allocation of workers throughout space.

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Source https://hal.science/hal-00999559
Author Boitier, Vincent
Maintainer CCSD
Last Updated May 5, 2026, 09:47 (UTC)
Created May 5, 2026, 09:47 (UTC)
Identifier hal-00999559
Language en
Rights https://about.hal.science/hal-authorisation-v1/
contributor Université Paris 1 Panthéon-Sorbonne - UFR d'Économie (UP1 UFR02) ; Université Paris 1 Panthéon-Sorbonne (UP1)
creator Boitier, Vincent
date 2014-06-03T00:00:00
harvest_object_id 164a17b3-0808-4489-894c-9b3a50e71c04
harvest_source_id 3374d638-d20b-4672-ba96-a23232d55657
harvest_source_title test moissonnage SELUNE
metadata_modified 2022-10-05T00:00:00
set_spec type:UNDEFINED