Whereas there has been an extended discussion concerning city population distribution, little has been said about that of administrative divisions. In this work, we investigate the population distribution of second-level administrative units of 150 countries and territories and propose the discrete generalized beta distribution (DGBD) rank-size function to describe the data. After testing the balance between the goodness of fit and number of parameters of this function compared with a power law, which is the most common model for city population, the DGBD is a good statistical model for 96% of our datasets and preferred over a power law in almost every case. Moreover, the DGBD is preferred over a power law for fitting country population data, which can be seen as the zeroth-level administrative unit. We present a computational toy model to simulate the formation of administrative divisions in one dimension and give numerical evidence that the DGBD arises from a particular case of this model. This model, along with the fitting of the DGBD, proves adequate in reproducing and describing local unit evolution and its effect on the population distribution.