IDEAS home Printed from
   My bibliography  Save this paper

The region of Madrid: Effects of agglomeration vs. centralisation


  • Carlos Iglesias Fernández
  • Raquel Llorente Heras
  • Diego Dueñas Fernández


Madrid is an atypical territory among the Spanish regions. In comparison with other areas, this region presents high labour activity rates (63.68 percent) and employment (59.7 percent) alongside low rates of unemployment (6.25 percent). However, this aggregated labour dynamism is not generalized to the whole region of Madrid, as important territorial differences exist. This paper offers an analysis of the territorial characteristics of the regional labour market in Madrid. With this motive in mind, we have developed the following two types of analysis: firstly, we classified the municipalities of Madrid based on labour indicators using alternative methodologies (two-step cluster and k-means procedure) that mainly demonstrate the existence of a dichotomising structure of the labour market associated with the presence of centralisation and agglomeration patterns; secondly, we developed several probability models (logits) that define and determine the previous territorial clusters showing important centralisation effects. This work establishes an interesting methodology which could be applied to other regions facilitating comparisons between regions. In addition, territory differentiation is necessary in order to deal with the future regional labour policy. The Region of Madrid can be used as a typical example of regional labour market centralisation.

Suggested Citation

  • Carlos Iglesias Fernández & Raquel Llorente Heras & Diego Dueñas Fernández, 2010. "The region of Madrid: Effects of agglomeration vs. centralisation," Working Papers 02/10, Instituto Universitario de Análisis Económico y Social.
  • Handle: RePEc:uae:wpaper:0210

    Download full text from publisher

    File URL:
    File Function: First version, 2010
    Download Restriction: no

    References listed on IDEAS

    1. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    2. Christine Aumayr, 2006. "European Region Types: A Cluster Analysis of European NUTS 3 Regions," ERSA conference papers ersa06p836, European Regional Science Association.
    3. Leo Sveikauskas, 1975. "The Productivity of Cities," The Quarterly Journal of Economics, Oxford University Press, vol. 89(3), pages 393-413.
    4. Wheaton, William C. & Lewis, Mark J., 2002. "Urban Wages and Labor Market Agglomeration," Journal of Urban Economics, Elsevier, vol. 51(3), pages 542-562, May.
    5. E. Paul Durrenberger, 2005. "Labour," Chapters, in: James G. Carrier (ed.),A Handbook of Economic Anthropology, chapter 8, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Madrid; labour market; cluster; logits; centralization;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uae:wpaper:0210. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Suarez). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.