This paper estimates the causal impact of the party allegiance (Republican or Democratic) of US governors on labor-market outcomes. I match gubernatorial elections with March Current Population Survey (CPS) data for income years 1977 to 2008. Using a regression discontinuity design, I find that Democratic governors cause an increase in the annual hours worked by blacks relative to whites, which leads to a reduction in the racial earnings gap between black and white workers. The results are consistent and robust to using a wide range of models, controls, and specifications. (JEL D72, J15, J22, J31, R23)
Beland, Louis-Philippe .
"Political Parties and Labor-Market Outcomes: Evidence from US States."
American Economic Journal: Applied Economics,
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Time Allocation and Labor Supply
Wage Level and Structure; Wage Differentials
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics