Recent research on working-class living standards during the Industrial Revolution has shown that wages do not cover all welfare components — for instance, working conditions, leisure time or the «access rights» needed make one prosper (health, education and freedom). This is why studies have been published in which wages are compared with other living standard indicators. Following this line of research, our paper examines the evolution of welfare among Biscayan miners between 1876 and 1936 by contrasting real wages, Human Development Index and height. An additional contribution of the paper is that we relate the high morbi-mortality in the Biscayan working-class neighbourhoods with market failures derived from urbanisation, a connection not explicitly considered in the literature on living standards during the Industrial Revolution. These market failures were known by liberal politicians because the hygienists urged the intervention of the State to correct or, at least, ease them. However, the town councils in the Bilbao mining zone took more than 20 years to put into practice the measures proposed by the hygienists.