Journal of Population Economics

, Volume 31, Issue 2, pp 627–670 | Cite as

The impact of party affiliation of US governors on immigrants’ labor market outcomes

Original Paper

Abstract

Do immigrants have better labor market outcomes under Democratic governors? By exploiting variations associated with close elections in a regression discontinuity (RD) design applied on gubernatorial elections in 50 states over the last two decades, we find that immigrants are more likely to be employed, work longer hours and more weeks, and have higher earnings under Democratic governors. Results are robust to a number of different specifications, controls, and samples.

Keywords

Earning gaps Immigration Labor market outcomes Political parties Regression discontinuity 

JEL Classification

J15 J21 J31 D72 

Notes

Acknowledgments

We thank the editor Klaus F. Zimmermann and three anonymous referees for their valuable comments and suggestions.

References

  1. Alesina A, Baqir R, Easterly W (1999) Public goods and ethnic divisions. Q J Econ 114:1234–84CrossRefGoogle Scholar
  2. Alt JE, Lowry RC (2000) A dynamic model of state budget outcomes under divided partisan government. J Polit 62(4):1035–69CrossRefGoogle Scholar
  3. Auerbach A, Gorodnichenko Y (2012) Measuring the output responses to fiscal policy. Amer Econo J Econ Policy 4:1–27CrossRefGoogle Scholar
  4. Autor DH, Katz LF, Kearney MS (2008) Trends in U.S. wage inequality: revising the revisionists. Rev Econ Stat 90:300–23CrossRefGoogle Scholar
  5. Beland L-P (2015) Political parties and labor market outcomes. Evidence from U.S. States. Amer Econ J Appl Econ 7:1–26CrossRefGoogle Scholar
  6. Beland L-P, Unel B (2017) Governors’ part affiliation and unions. Indus Relat. ForthcomingGoogle Scholar
  7. Beland L-P, Oloomi S (2017) Party affiliation and public spending: Evidence from US governors. Econ Inq 55(2):982–995CrossRefGoogle Scholar
  8. Besley T, Case A (1995) Does electoral accountability affect economic policy choices? Evidence from gubernatorial term limits. Q J Econ 110(3):769–798CrossRefGoogle Scholar
  9. Besley T, Case A (2003) Political institutions and policy choices: evidence from the United States. J Econ Lit 41:7–73CrossRefGoogle Scholar
  10. Borjas G (2003) The labor demand curve is downward sloping: reexamining the impact of immigration on the labor market. Q J Econ 118:1335–74CrossRefGoogle Scholar
  11. Calonico S, Cattaneo MD, Titiunik R (2012) Robust data-driven inference in the regression-discontinuity design. Stata J 55:1–29Google Scholar
  12. Card D (2001) Immigrant inflows, native outflows, and the local market impacts of higher immigration. J Labor Econ 19:22–64CrossRefGoogle Scholar
  13. Card D (2009) Immigrant and inequality. Amer Econ Rev Papers Proc 99:1–21CrossRefGoogle Scholar
  14. Cellini SR, Ferreira F, Rothstein J (2010) The value of school facility investments: evidence from a dynamic regression discontinuity design. Q J Econ 125:215–61CrossRefGoogle Scholar
  15. Caughey D, Sekhon JS (2011) Elections and the regression discontinuity design: lessons from close US house races, 1942–2008. Polit Anal 19:385–408CrossRefGoogle Scholar
  16. Congressional Budget Office (2013) A description of immigration population. Washington, DC: CBOGoogle Scholar
  17. Cortes P (2008) The effect of low-skilled immigration on US prices: evidence from CPI data. J Polit Econ 116:381–422CrossRefGoogle Scholar
  18. Damm AP (2009) Determinants of recent immigrants location choices: quasi-experimental evidence. J Popul Econ 22(1):145–174CrossRefGoogle Scholar
  19. Dark TE (2001) The unions and the Democrats: an enduring alliance. Cornell University Press, Ithaca, NY, United StatesGoogle Scholar
  20. Fazzari SM, Morley J, Panovska I (2015) State-dependent effects of fiscal policy. Stud Nonlin Dyn Economet 19:285–315Google Scholar
  21. Ferreira F, Gyourko J (2009) Do political parties matter? Evidence from U.S cities. Q J Econ 124(1):399–422CrossRefGoogle Scholar
  22. Garand JC (1988) Explaining government growth in the U.S. states. Amer Polit Sci Rev 82:837–849CrossRefGoogle Scholar
  23. Hemming R, Kell M, Selma M (2002) The effectiveness of fiscal policy on stimulating the economy. IMF Working PaperGoogle Scholar
  24. Hunt J, Gauthier-Loiselle M (2010) How much does immigration boost innovation? Amer Econ J Macroecon 2:31–56CrossRefGoogle Scholar
  25. Hunt J, Gauthier-Loiselle M, Rachek Friedberg (1999) Immigrants and the receiving economies. In: Hirschman C, Kasinitz P, DeWind J (eds) Handbook of international migration: the American experience. Russell Sage FoundationGoogle Scholar
  26. Imbens G, Kalyanaraman K (2012) Optimal bandwidth choice for the regression discontinuity estimator. Rev Econ Stud 79(3):933–959CrossRefGoogle Scholar
  27. Jensen JM, Beyle T (2003) Of footnotes, missing data, and lessons for 50-state data collection: the gubernatorial campaign finance data project, 1977–2001. State Polit Policy Q 3(2):203–214CrossRefGoogle Scholar
  28. King M, Ruggles S, Trent Alexander J, Flood S, Genadek K, Schroeder MB, Trampe B, Vick R (2010) Integrated public use microdata series, current population survey: version 3.0 [Machine-readable database]. University of Minnesota, MinneapolisGoogle Scholar
  29. Knight B (2000) Supermajority voting requirements for tax increases: evidence from the states. J Public Econ 76:41–67CrossRefGoogle Scholar
  30. Lee DS (2008) Randomized experiments from non-random selection in U.S.: house elections. J Econ 142(2):675–697CrossRefGoogle Scholar
  31. Lee S, Lemieux T (2010) Regression discontinuity designs in economics. J Econ Lit 48(2):281–355CrossRefGoogle Scholar
  32. Lee DS, Lemieux T (2014) Regression discontinuity designs in the social sciences. In: Best H, Wolf C (eds) Regression analysis and causal inference. SageGoogle Scholar
  33. Leip D (2015) Dave Leip’s atlas of U.S. presidential elections. http://uselectionatlas.org
  34. Lewis EG (2011) Immigration, skill mix, and capital skill complementarity. Q J Econ 126:1029–69CrossRefGoogle Scholar
  35. Mayda AM, Peri G, Steingress W (2015) Immigration to the US: a problem for the republicans or the democrats?Google Scholar
  36. McCrary J (2008) Manipulation of the running variable in the regression discontinuity design: a density test. J Econ 142(2):698–714CrossRefGoogle Scholar
  37. McHenry P (2015) Immigration and the human capital of natives. J Human Resour 50:34–71Google Scholar
  38. Moretti E, Butler MJ (2004) Do voters affect or elect policies? Evidence from the U.S. house. Q J Econ 119(3):807–859CrossRefGoogle Scholar
  39. Ottaviano GIP, Peri G (2012) Rethinking the effects of immigration on wages. J Eur Econ Assoc 10:152–97CrossRefGoogle Scholar
  40. Peri G (2012) The effect of immigration on productivity: evidence from U.S. states. Rev Econ Stat 94:348–58CrossRefGoogle Scholar
  41. Petrocik JR (2009) Measuring party support: leaners are not independents. Elect Stud 28(4):562–72CrossRefGoogle Scholar
  42. Pettersson-Lidbom P (2008) Do parties matter for economic outcomes? A regression-discontinuity approach. J Eur Econ Assoc 6(5):1037–56CrossRefGoogle Scholar
  43. Preston I (2013) The effect of immigration on public finances. Technical Report, CReAM Discussion PaperGoogle Scholar
  44. Razin A, Sadka E, Swagel P (2002) Tax burden and migration: a political economy theory and evidence. J Public Econ 85:167–90CrossRefGoogle Scholar
  45. U.S. Bureau of Economic Analysis (2014) Table 2.3.4. Price indexes for personal consumption expenditure by major type of product. BEA, Washington DCGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany 2017

Authors and Affiliations

  1. 1.Department of EconomicsLouisiana State UniversityBaton RougeUSA

Personalised recommendations