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A test of the market potential equation in Spain

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Abstract:

In this article, we examine the relationship between regional wages in Spain and the market potential of these regions in the period 1955 to 1995. We demonstrate the existence of a spatial wage structure, in which wages fall with increasing distance from the highest income regions. This result strengthens the hypothesis that agglomerative forces were operating in Spain during the second half of the twentieth century.

Document Type: Research Article

DOI: https://doi.org/10.1080/00036840601032169

Affiliations: 1: Departament de Teoria Economica and CAEPS, Universitat de Barcelona, Av Diagonal 690 08034, Barcelona 2: Departament d'Econometria, Estadistica i Economia Espanyola and CAEPS, Universitat de Barcelona, Av Diagonal 690 08034, Barcelona 3: Departament d'Historia i Institucions Economiques, Universitat de Barcelona, Av Diagonal 690 08034, Barcelona

Publication date: 2009-05-01

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