The upswing of regional income inequality in Spain (1860-1930) |
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Authors: | Joan Ramón Rosés Julio Martínez-Galarraga Daniel A Tirado |
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Institution: | a Departamento de Historia Económica e Instituciones and Instituto Figuerola, Universidad Carlos III de Madrid, C/Madrid 126, 28903 Getafe, Spain b Departament d´Història i Institucions Econòmiques and XREPP, Universitat de Barcelona, Avg. Diagonal 690, 08034 Barcelona, Spain |
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Abstract: | This paper studies the evolution of Spanish regional inequality from 1860 to 1930. The results point to the coexistence of two basic forces behind changes in regional economic inequality: industrial specialization and labor productivity differentials. The initial expansion of industrialization, 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, the diffusion of manufacturing production to a greater number of locations has generated the emulation of production structures and a process of catching-up in labor productivity and wages. |
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Keywords: | Industrialization Market integration Heckscher-Ohlin model New economic geography Regional convergence |
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