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The Impact of Budget (De)Centralization on Social and Regional (In)Equality Formation

Student: Ilia Orlov

Supervisor: Leonid M. Grigoryev

Faculty: Faculty of Social Sciences

Educational Programme: Politics. Economics. Philosophy (Master)

Final Grade: 10

Year of Graduation: 2021

The work is devoted to the study of the impact of (de)centralization on social and regional (in)equality. The paper proposes to consider (de)centralization as a process, and not as a state or condition and studies its impact on (in)equality at the level of individual countries, rather than using the classical panel regression, which estimates rather the distribution of countries along the axes of "(de)centralization" and “(in)equality”, but is unable to assess the impact of (de)centralization policies on (in)equality in individual countries. On the basis of the synthetic control method the impact of decentralization processes in Belgium and Italy, as well as centralization processes in Denmark, Hungary, Serbia, and the United Kingdom, on (in)equality in these countries is evaluated. It is concluded that the policy of decentralization helps to reduce social inequality, while centralization exacerbates social inequality, however, the effect of (de) centralization on regional inequality has not been established.

Full text (added May 13, 2021)

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