Inequality and poverty in a developing economy: Evidence from regional data (Spain, 1860-1930)

Apart from measuring inequality and poverty at the provincial level in Spain between 1860 and 1930, this paper empirically assesses the relationship between economic growth and both inequality and destitution. The results, on the one hand, confirm the presence of a Kuznets' curve. However, although growing incomes did not directly contribute to reducing inequality, at least during the early stages of modern economic growth, other processes associated with economic growth significantly improved the situation of the bottom part of the population. On the other hand, growing incomes and lower inequality levels are shown to have been pro-poor.