Spain’s Uneven Economy: How Demographics and Geography Shape Inequality Indicators in Different Regions
In recent decades, the Spanish economy has undergone significant changes, affecting different regions in uneven ways. While some previously prosperous rural areas and small to medium-sized metropolitan areas now face job losses and slow income growth, larger metropolitan areas have been more dynamic.
Demographic changes have also varied greatly across different regions, leading to significant disparities in inequality and well-being indicators when viewed from a municipal perspective. According to the VI Report on inequality in Spain from the Alternativas Foundation, some provinces have average ages that differ by almost ten years due to these transformations. This has resulted in increased disparities in terms of well-being indicators such as income, health, education, and labor market opportunities.
The report reveals that municipalities in Madrid and Barcelona, along with those in the Basque Country, Galicia, and certain isolated cities such as Zaragoza or Logroño, have higher values for these indicators of greater well-being. On the other hand, most locations with lower values are found on the southern peninsula and the Canary Islands. However, it is important to note that these indicators do not always correspond to an egalitarian distribution of income. Inequality in large cities is much higher than that in rural areas.
Examining the municipal map of inequality in Spain reveals that Madrid and its surroundings, as well as parts of the Mediterranean coast and islands, stand out for their high values. In contrast, most of the Cantabrian coast has lower values. These results prompt us to consider the reasons behind these disparities and how they can be addressed.
The concept of new economic geography provides different theoretical frameworks for understanding how economic processes affect territorial differences. One crucial aspect is how the location of companies and workers influences access to large markets.
