Does political decentralization affect income inequality? The role of governance quality
研究了政治分权对收入不平等的影响，发现分权能降低不平等，且治理质量越低的国家效果越强，可能因为私人投资减少了不平等。
This paper examines whether an increase in political decentralization, which is a global trend, affects income inequality. It argues that the effect of decentralization on equality lies with the quality of governance, that is, how well the traditions and institutions of an authority in a country are exercised. Using an instrumental variables (IV)/two-stage least squares (2SLS) method, this paper shows that an increase in decentralization reduces inequality. However, this reduction is stronger for countries with a relatively low quality of governance, possibly because private investments in these countries reduce income inequality. A policy implication is that institutional-specific decentralization strategies can reduce inequalities.