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 initThis 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[+][-]