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This research aims to examine how local cost of living influences measurements of poverty and income inequality in Spain.

Local cost of living and the geography of inequality: evidence from Spain

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Research reveals how local costs affect poverty and inequality measurements in Spain, suggesting more accurate metrics are needed.

This research aims to examine how local cost of living influences measurements of poverty and income inequality in Spain.
Developed a public database of local consumer price indices tailored to income groups from 2006 to 2023.
Used local CPIs to adjust household incomes for inflation, contrasting findings with national measures.
Analyzed the impact of cost of living discrepancies on reported poverty levels across urban and rural areas.
National inflation adjustments underestimate the growth in inequality during the financial crisis.
Poverty is overestimated in rural areas and underestimated in larger cities due to unaccounted local cost variations.
The study emphasizes the need for spatially adjusted metrics in policy-making.

Beatriz Jambrina-Canseco (2026) studied this question.

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