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Political Parties and Labor-Market Outcomes: Evidence from US States

Author

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  • Louis-Philippe Beland Jr.

Abstract

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)

Suggested Citation

  • Louis-Philippe Beland Jr., 2015. "Political Parties and Labor-Market Outcomes: Evidence from US States," American Economic Journal: Applied Economics, American Economic Association, vol. 7(4), pages 198-220, October.
  • Handle: RePEc:aea:aejapp:v:7:y:2015:i:4:p:198-220
    Note: DOI: 10.1257/app.20120387
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    Citations

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    Cited by:

    1. Rickman, Dan S. & Wang, Hongbo, 2018. "Two tales of two U.S. states: Regional fiscal austerity and economic performance," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 46-55.
    2. Brodeur, Abel, 2015. "Terrorism and Employment: Evidence from Successful and Failed Terror Attacks," IZA Discussion Papers 9526, Institute for the Study of Labor (IZA).
    3. repec:kap:pubcho:v:174:y:2018:i:1:d:10.1007_s11127-017-0491-3 is not listed on IDEAS
    4. repec:ces:ifodic:v:14:y:2016:i:1:p:19204333 is not listed on IDEAS
    5. Beland, Louis-Philippe & Boucher, Vincent, 2015. "Polluting politics," Economics Letters, Elsevier, vol. 137(C), pages 176-181.
    6. Daniele Girardi, 2018. "Political shocks and financial markets : regression-discontinuity evidence from national elections," UMASS Amherst Economics Working Papers 2018-08, University of Massachusetts Amherst, Department of Economics.
    7. repec:bla:ecinqu:v:55:y:2017:i:2:p:982-995 is not listed on IDEAS
    8. repec:eee:pubeco:v:158:y:2018:i:c:p:25-47 is not listed on IDEAS
    9. Carozzi, Felipe & Repetto, Luca, 2016. "Distributive Politics inside the City? The Political Economy of Spain’s Plan E," Working Paper Series 2016:15, Uppsala University, Department of Economics.
    10. Louis-Philippe Beland & Bulent Unel, 2018. "The impact of party affiliation of US governors on immigrants’ labor market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(2), pages 627-670, April.
    11. Yu-Chin Hsu & Chung-Ming Kuan & Giorgio Teng-Yu Lo, 2017. "Quantile Treatment Effects in Regression Discontinuity Designs with Covariates," IEAS Working Paper : academic research 17-A009, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    12. Louis-Philippe Beland & Bulent Unel, 2015. "Democrats and Unions," Departmental Working Papers 2015-02, Department of Economics, Louisiana State University.
    13. repec:eee:jeborg:v:143:y:2017:i:c:p:58-77 is not listed on IDEAS
    14. Niklas Potrafke, 2017. "Government Ideology and Economic Policy-Making in the United States," CESifo Working Paper Series 6444, CESifo Group Munich.
    15. Louis-Philippe Beland, 2016. "Political Parties and Economic Outcomes. A Review," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(1), pages 47-54, 05.
    16. Louis-Philippe Beland & Ozkan Eren & Bulent Unel, 2015. "Politics and Entrepreneurial Activity in the U.S," Departmental Working Papers 2015-04, Department of Economics, Louisiana State University.
    17. Federico Quaresima & Fabio Fiorillo & Raffaella Santolini, 2018. "Does Political Affiliation Matter On Post-Parliamentary Careers In The Boards Of Public Enterprises?," Working Papers 429, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    18. Matthew Doyle & Corrado Di Maria & Ian A. Lange & Emiliya Lazarova, 2016. "Electoral Incentives and Firm Behavior: Evidence from U.S. Power Plant Pollution Abatement," CESifo Working Paper Series 6127, CESifo Group Munich.
    19. Daniel B. Jones & Randall Walsh, 2016. "How Do Voters Matter? Evidence from US Congressional Redistricting," NBER Working Papers 22526, National Bureau of Economic Research, Inc.
    20. Louis-Philippe Beland & Bulent Unel, 2017. "Politics and Entrepreneurship in the U.S," Departmental Working Papers 2017-05, Department of Economics, Louisiana State University.
    21. Dodge Cahan & Niklas Potrafke, 2017. "The Democratic-Republican Presidential Growth Gap and the Partisan Balance of the State Governments," CESifo Working Paper Series 6517, CESifo Group Munich.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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