Asymmetric Decentralization and Inequality

This paper examines how spatial inequalities interact with asymmetric decentralization to shape redistributive effort and distributional outcomes. Using cross-national evidence on top income and wealth shares, progressive tax structures, and measures of asymmetric regional authority and legislative malapportionment, the authors find: (i) higher spatial inequality is associated with greater concentration at the top of the income and wealth distributions; (ii) asymmetric regional authority is, on average, linked to lower inequality and higher progressive tax shares, though its egalitarian association weakens as spatial inequality rises; and (iii) legislative malapportionment correlates with higher inequality and lower progressive taxation and typically amplifies the inequality-raising role of spatial disparities. The results highlight that institutional asymmetries condition the capacity and willingness of states to tax and redistribute under pronounced territorial disparities.