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The long-term patterns of regional income inequality in Spain (1860-2000)

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  • Joan R. Rosés

    ()

  • Daniel A. Tirado

    ()

  • Julio Martínez-Galarraga

    ()

Abstract

This paper studies the evolution of Spanish regional inequality from 1860 to 2000. The results point to the coexistence of two basic forces behind changes in regional economic inequality: differences in economic structure and labor productivity across regions. In the Spanish case, the initial expansion of industrialization during the period 1860-1900, in a context of growing economic integration of regions, promoted the spatial concentration of manufacturing in certain regions, which also benefited from the greatest advances in terms of labor productivity. Since 1900 and until 1985, the diffusion of manufacturing and services production to a greater number of locations generated the emulation of production structures and a process of catching-up in labor productivity and wages. So, in these first 125 years, national market integration and economic growth has been followed by a Ushaped evolution of regional incomes inequality. Nevertheless, some productivity differentials remained and, from 1985 on, the Spanish entry in the UE generated a new upsurge of divergence in productivity across Spanish regions that could be in the base of a new phase of regional income divergence.

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Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Historia Económica e Instituciones in its series Working Papers in Economic History with number wp10-08.

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Date of creation: Oct 2010
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Handle: RePEc:cte:whrepe:wp10-08

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Keywords: Industrialization; Market integration; Heckscher-Ohlin Model; New economic geography;

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References

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  1. Prados de la Escosura Leandro, 2003. "El progreso económico de España (1850-2000)," Books, Fundacion BBVA / BBVA Foundation, edition 1, number 201136.
  2. Julio Martínez-Galarraga & Elisenda Paluzie & Jordi Pons & Daniel A. Tirado-Fabregat, 2008. "Agglomeration and labour productivity in Spain over the long term," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 2(3), pages 195-212, October.
  3. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592.
  4. Julio Martinez-Galarraga & Joan R. Roses & Daniel A. Tirado Fabregat, 2009. "The Upswing of Regional Income Inequality in Spain (1860-1930)," Working Papers in Economic History wp09-05, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  5. Prados de la Escosura, Leandro & Rosés, Joan R., 2009. "The Sources of Long-Run Growth in Spain, 1850-2000," The Journal of Economic History, Cambridge University Press, vol. 69(04), pages 1063-1091, December.
  6. Leandro Prados de la Escosura, 2006. "Growth And Structural Change In Spain, 1850-2000," Working Papers in Economic History wp06-05, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
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Cited by:
  1. Carlo Ciccarelli & Anna Missiaia, 2014. "Business Fluctuations in Imperial Austria's Regions, 1867-1913: New Evidence," CEIS Research Paper 312, Tor Vergata University, CEIS, revised 11 Apr 2014.
  2. Daniel Tirado & Marc Badia-Miró, 2012. "Economic integration and regional inequality in Iberia (1900-2000) : a geographical approach," Working Papers in Economic History wp12-03, Universidad Carlos III, Departamento de Historia Económica e Instituciones.

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