A new form of service outsourcing has emerged, namely the global online job marketplace for freelance contractors. Such platforms are currently the closest proxy to the idea of a global labour market where everyone competes for jobs regardless of location. In this article, we examine how competition manifests itself on one such global online platform, namely oDesk. We present a comparative analysis of the relative wages and the rewarding of skills and expertise of contractors from selected countries and investigate whether, via labour arbitrage, wage convergence takes place between Western and developing countries. We find that wage convergence is noticeable but experience and skills hardly translate into better remuneration. While service outsourcing (or microwork) via global online marketplaces provides new employment opportunities for freelancers around the world, the intense competition and the inherent restrictions of this type of marketplace limit the financial gains for most contractors.

Local contexts are becoming more important as the impact of the process of globalisation on the spatial distribution of economic activities seems to generate not so much processes of homogenisation as of heterogenisation between regions in advanced economies. The combination of specialisation and spatial concentration of economic activity in advanced economies has attracted much attention from economists and geographers. Here, we explore at what level of spatial aggregation contemporary tendencies of clustering of economic activities articulate themselves within the archetypal polycentric urban region of the Dutch Randstad. To examine this question, we look at profiles of business start-ups in the individual cities of the Randstad. Our focus is on business start-ups as they respond most directly to the changes taking place in the economic environment and especially those regarding the supply of labour. Our findings point to the direction of cluster formation at a supraurban level. The profiles of business start-ups are clearly converging. A process of intraregional-i.e. at the level of the polycentric urban region-homogenisation with respect to new economic activities is taking place. Within the Randstad, notably a decreasing divide between a north wing and a south wing is revealed.

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Europe has come to recognize that its regions have a major role to play in achieving its cohesion and competitiveness objectives. EU policies and Structural Fund principles are therefore increasingly geared towards enhancing regional capacities. Regions across Europe are responding, with varying results so far. The Randstad, in the Netherlands, presents itself as a 'far from best' example. Despite continued and serious attempts to strengthen capacities and institutions, the region still lacks effective governance. This paper explores the question why it is next to impossible to establish a framework for effective governance in the Randstad and distils some lessons for other regions in Europe.

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