The recent economic changes have had a significant impact on different geographical regions of Spain. While some rural areas and small and medium-sized metropolitan areas are experiencing job losses and slow income growth, large metropolitan areas are showing more dynamic behavior.
Demographic changes have also varied across regions, leading to differences in average age between provinces that can be as much as ten years. These transformations have contributed to an increase in disparities in inequality and well-being indicators, particularly when measured at the municipal level.
A report by the Alternativas Foundation sheds light on these differences, highlighting the indicators of greater well-being found in municipalities located in Madrid, Barcelona, and other regions such as the Basque Country, Galicia, and isolated cities like Zaragoza or Logroño. On the other hand, most locations with values below the average are located in southern Spain and the Canary Islands.
It’s important to note that inequality is not always evenly distributed across income levels. Inequality is higher in large cities than it is in rural areas. This can be seen on the municipal map of inequality in Spain where Madrid and its surroundings stand out due to their high values alongside parts of the Mediterranean coast and islands such as Barcelona. In contrast, most of the Cantabrian coast has lower values than average.
The new economic geography provides different theoretical approaches to understanding how economic processes affect territorial economic differences. One critical factor is how companies’ location influences access to large markets for workers. Understanding these factors can help us address disparities in inequality and improve overall well-being indicators across different regions of Spain.