The territorial dynamics of income in Spain. Direct determinants of relative income

Summary

This paper analyzes the contribution of demography, employment and productivity to income disparities per capita between the Spanish regions and their evolution over the past six decades

Key points

• Key points:
• The results include the growing weight of the employment factor as a source of per capita income disparities between the Autonomous Communities
• While regional productivities have converged at a good pace throughout most of the period analysed, employment rates in the poorest regions have fallen in relative terms, making it difficult for them to move towards income levels close to the national average and slowing down the convergence process
• As a result, territorial income inequality is no longer almost exclusively a problem of productivity, but rather a fundamental problem of employment

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