The forest behind the tree: Heterogeneity in how U.S. Governor’s party affects black workers

Income inequality is a distributional phenomenon. This paper examines the impact of U.S. governor’s party allegiance (Republican vs Democrat) on ethnic wage gap. A descriptive analysis distribution yearly earnings Whites and Blacks reveals divergence in their respective shapes over time suggesting that aggregate may mask important heterogeneous effects. motivates granular estimation comparative causal effect governors’ affiliation labor market outcomes. uses regression discontinuity design (RDD) based marginal electoral victories samples quantiles groups by hours worked. Overall, estimations show vast majority subgroups Black workers are not affected democrat policies, possible existence structural factors markets contribute to create keep trap and/or hour worked for most workers. Democrat governors increase number at highest quartiles earnings. bivariate shows democrats decrease total who have largest earn least. more working fewer than half sample see under governor.