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Income inequality is a distributional phenomenon. This paper examines theimpact of U.S governor's party allegiance (Republican vs Democrat) on ethnicwage gap. A descriptive analysis of the distribution of yearly earnings ofWhites and Blacks reveals a divergence in their respective shapes over timesuggesting that aggregate analysis may mask important heterogeneous effects.This motivates a granular estimation of the comparative causal effect ofgovernors' party affiliation on labor market outcomes. We use a regressiondiscontinuity design (RDD) based on marginal electoral victories and samples ofquantiles groups by wage and hours worked. Overall, the distributional causalestimations show that the vast majority of subgroups of black workers earningsare not affected by democrat governors' policies, suggesting the possibleexistence of structural factors in the labor markets that contribute to createand keep a wage trap and/or hour worked trap for most of the subgroups of blackworkers. Democrat governors increase the number of hours worked of blackworkers at the highest quartiles of earnings. A bivariate quantiles groupsanalysis shows that democrats decrease the total hours worked for black workerswho have the largest number of hours worked and earn the least. Black workersearning more and working fewer hours than half of the sample see their numberof hours worked increase under a democrat governor.

The Forest Behind the Tree: Heterogeneity in How US Governor's Party Affects Black Workers