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Market access, the skill premium and human capital in Spain (1860-1930)

Author

Listed:
  • Rafael González-Val

    (Universidad de Zaragoza and Institut d’Economia de Barcelona (IEB))

  • Pau Insa-Sánchez

    (Universitat de València)

  • Julio Martinez-Galarraga

    (Universitat de Barcelona)

  • Daniel A. Tirado-Fabregat

    (Universitat de València)

Abstract

This paper explores the relationship between market access and education levels in the context of an industrializing economy, in this case Spain between the late nineteenth and early twentieth centuries. Specifically, we examine whether differences in regional accumulations of human capital could be related to market access, which would explain the divergent trajectories of regional economic growth in Spain. To do this, we empirically test the relationship between education variables and market potential for Spanish provinces between 1860 and 1930. We then focus on the mechanism that may be mediating this relationship, i.e. the skill premium. The results suggest that there were sizeable provincial differences in the return on investment in education, the explanation for which would be that those provinces with the highest market potential specialized more in skill-intensive sectors in which higher wages were paid.

Suggested Citation

  • Rafael González-Val & Pau Insa-Sánchez & Julio Martinez-Galarraga & Daniel A. Tirado-Fabregat, 2022. "Market access, the skill premium and human capital in Spain (1860-1930)," Working Papers 0229, European Historical Economics Society (EHES).
    • Handle: RePEc:hes:wpaper:0229
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    More about this item

    Keywords

    Economic history; market access; human capital;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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