A test of the market potential equation in Spain

Elisenda Paluzie (), Jordi Pons and Daniel Tirado-Fabregat

Applied Economics, 2009, vol. 41, issue 12, 1487-1493

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.

Date: 2009
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DOI: 10.1080/00036840601032169

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