23 - Living Standards in Iberia, 1800–2010

Summary

During the nineteenth century, Iberia entered the path towards modern economic growth. Although industrialization occurred later than in other Western European countries, economic progress ultimately led to an unprecedented improvement in the standards of living. This chapter aims to analyse the evolution of such advances and, when possible, compare Iberia with its Western European counterparts. In so doing, it presents several indicators capturing different dimensions of well-being, average income, consumption patterns, height, life expectancy, and a synthetic measure, the Human Development Index (HDI). Income distribution is examined by looking at alternative inequality indicators: Gini coefficient, the extraction ratio and top income shares. Based on this information the long-run evolution of economic inequality is assessed. All in all, the evidence presented shows that economic progress and well-being significantly improved in Iberia since mid-nineteenth century, although this happened at a slower pace than in Western Europe.