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Instituto Valenciano de Investigaciones Económicas

Publications

A closer look at the long-term patterns of regional income inequality in Spain: The poor stay poor (and stay together)
WP-EC 2015-05
A closer look at the long-term patterns of regional income inequality in Spain: The poor stay poor (and stay together)
Tirado, D.A., Díez, A. and Martínez, J.
Year of publication: 2015
Keywords: Regional inequality, Spain, Regional growth, Economic history
JEL Classification: C21, O18, R0, N9, N64, F14
DOI: http://dx.medra.org/10.12842/WPASEC-2015-05
Abstract
Using a novel dataset, this paper explores the evolution of regional income inequality in Spain, 1860-2010. We follow the growth literature and use spatial exploratory tools to analyse modality, mobility and spatial clustering. We find two clearly distinguishable periods. First, there was an upswing in regional inequality accompanied by a certain mobility between 1860 and 1930. This was followed by a period of regional convergence, in which mobility was rather low. In parallel to this, a geographical concentration of the richest and poorest regions took place, with wealthy Spain located in the north-east and poor Spain in the south. In the last decades convergence has come to a halt, mobility is quasi-non-existent and spatial polarization has tended to increase.