Abstract:
Real wages PPP adjusted are used to analyse labour market integration in Spain. In contrast to earlier research analysing migration and nominal wages rates, our research seems to indicate that a well-integrated labour market had emerged in Spain by 1914 and substantial wage convergence happened from 1850 to 1914 with low rates of interna l migration. The shock of World War I and the subsequent globalisation backlash appear to disrupt this integrated market provoking a spectacular increase in wage differentials across regions and provinces. However, real wage convergence across Spanish provinces resumed powerfully over 1920s, this time accompanied by high internal migrations.