Potencial de mercado y estructura espacial de los Salarios en las regiones espanolas, 1955-1995

In this paper we examine the relationship between the wages of Spanish regions and their market potential in the period 1955-1995. We prove the existence of a wage spatial structure, where wages decrease when we move away from rich regions. This result reinforces the hypothesis of the existence of an agglomeration dynamics in Spain during the second half of the 20th century. However, the effect of market potential on wages diminished in the second half of the period (1975-1995). This last result is consistent with the redispersion of industrial activity in Spain after the mid seventies.