Madrid is a hub of numerous high-level tertiary activities and the financial and decision-making center of the Spanish economy, Madrid in the 1990s has an income level per person that is at the average of the European Union. This growth in income per capita is based largely on increases in labor productivity. Growth in labor activity is also an element that contributes to increased production in this economy. Madrid is the major recipient of migratory flows, and in the last four decades has doubled its population as a proportion of the Spanish total. The educational levels of its population are always above the national average. The work is part of the framework of collaboration between the BBV Foundation and the Valencian Institute for Economic Research (IVIE) to study the regional Spanish economy.