2021/10/01 by Guy Tchuente, Tchuente, Guy, Johnson Kakeu +3
Economics, Econometrics and Finance · Social Sciences · #Allegiance #Ceteris paribus #Corruption and Economic Development #Demographic economics #Distribution (mathematics) #Earnings #Economics #Electoral Systems and Political Participation #FOS: Economics and business #Finance #Fiscal Policy and Economic Growth #General Economics (econ.GN) #Governor #Labor market dynamics and wage inequality #Labour economics #Law #Political science #Politics #Regression discontinuity design #Statistics #Wage #econ.GN #q-fin.EC
paper · pdf · doi:10.48550/arxiv.2110.00582
published in arXiv (Cornell University) (Cornell University) · 30 pages
arxiv created 2021/10/01 · openalex publication_date 2021/10/01 · arxiv updated 2021/10/05 · openalex created_date 2022/07/25 · openalex updated_date 2026/08/06
Income inequality is a distributional phenomenon. This paper examines the\nimpact of U.S governor's party allegiance (Republican vs Democrat) on ethnic\nwage gap. A descriptive analysis of the distribution of yearly earnings of\nWhites and Blacks reveals a divergence in their respective shapes over time\nsuggesting that aggregate analysis may mask important heterogeneous effects.\nThis motivates a granular estimation of the comparative causal effect of\ngovernors' party affiliation on labor market outcomes. We use a regression\ndiscontinuity design (RDD) based on marginal electoral victories and samples of\nquantiles groups by wage and hours worked. Overall, the distributional causal\nestimations show that the vast majority of subgroups of black workers earnings\nare not affected by democrat governors' policies, suggesting the possible\nexistence of structural factors in the labor markets that contribute to create\nand keep a wage trap and/or hour worked trap for most of the subgroups of black\nworkers. Democrat governors increase the number of hours worked of black\nworkers at the highest quartiles of earnings. A bivariate quantiles groups\nanalysis shows that democrats decrease the total hours worked for black workers\nwho have the largest number of hours worked and earn the least. Black workers\nearning more and working fewer hours than half of the sample see their number\nof hours worked increase under a democrat governor.\n