Tilly on Raising California’s Minimum Wage

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UCLA Luskin Urban Planning Professor Chris Tilly spoke to CalMatters for a story about California’s Proposition 32, a measure on the November ballot that would raise the state’s minimum wage to $18 in the coming year. The proposed increase follows minimum hikes enacted in 2016 to boost the minimum wage to $15 an hour by 2022. Experts, advocates and workers have questioned whether the most recent hike will be enough to make a significant difference in Californians’ lives. A number of California cities already have enacted higher minimum wages, motivated by the higher cost of living, while unions have successfully pushed for higher wages for specific industries including fast food and health care, and are pushing for more. “In some ways, at the point where this measure is heading to the ballot, it’s kind of underwhelming,” said Tilly, who studies labor markets.

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Tilly on U.S. Wages and Job Creation

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UCLA Luskin Urban Planning Professor Chris Tilly spoke to CNBC in a story about the trend in real earnings — the net growth in worker’s wages after inflation — in the U.S. over the past year. According to data from the U.S. Bureau of Labor Statistics, the average worker in the private sector saw an increase in real hourly earnings from May 2023 to May 2024. “The last year of increases in real wages is a large and important step forward for working families,” said Tilly, who studies labor markets and public policies directed toward better jobs. Tilly also commented in a Spectrum News 1 story about U.S. job growth during the current presidential administration. “The economy started out in a hole due to the pandemic when President Biden assumed the presidency, and so part of the process was getting out of that hole,” he said. “That’s a lot of jobs to create.”

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Reframing Perspectives on Who’s Helped, Hurt by Minimum Wage Hikes

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Urban Planning Professor Chris Tilly spoke to news outlets about the impact of California’s new wage law on fast-food chains as well as smaller businesses. The law sets a $20 minimum hourly wage for fast-food workers at chains with 60 or more restaurants nationwide. But the impact is also felt by local ethnic restaurants and other small businesses, which must compete to retain workers. “These grassroots businesses are part of the glue that holds communities together, and they’re what give the community an identity,” Tilly told the Los Angeles Times. He also spoke to USA Today about the wage hike’s effect on consumer prices and hiring practices. “The big critique of minimum wages is ultimately it’s a job killer, that it hurts the people that you’re trying to help,” but data from the last three decades has not shown those effects, Tilly said. “We do have to think about how to help people. But to do that by hurting other low-income people doesn’t seem like the right strategy to me.”

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A President’s Economic Record Is ‘Heavily Dominated by Luck’

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Two United Press International stories about the economic records of Joe Biden and Donald Trump called on UCLA Luskin Urban Planning Professor Chris Tilly for insights. Tilly assessed the economic principles surrounding measures such as tax cuts and infrastructure investments, but also pointed out that the role a president plays in the fiscal health of the country is often overstated. “We tend to give presidents too much credit or blame,” he said. “Most of what is going on in the economy is not something the president can control.” The United States is one cog in a global economy that can be roiled by war, political turmoil, weather emergencies and catastrophic events such as the COVID-19 pandemic. ”The economic record of a four-year period is heavily dominated by luck, good or bad,” Tilly said.

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Heated Debate as Cal State Union Votes on a New Deal

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Urban Planning Professor Chris Tilly spoke to LAist about a tentative deal to settle a strike by California State University faculty. The union representing 29,000 coaches, counselors, lecturers, librarians and professors will vote on the agreement this week, and many are torn over whether they should support the deal or hold out for better terms. “Heated debate among membership is a good thing. Democratic unions with engaged memberships are healthier for it,” said Tilly, an expert on labor markets who also spoke with student media about the strike. Tilly noted that the agreement includes additional raises for the union’s lowest-paid members. “That’s something that unions don’t always attend to but is really important,” he said. “We have growing inequality. And in any workplace, the people at the bottom are the people that are struggling the most, and the fact that the union put a priority on that and won that is really a very positive thing.”

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On the CSU Picket Line, Anger Over Pay Gap

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An LAist article on a strike by California State University faculty called on Urban Planning Professor Chris Tilly for insights on equitable pay. The strike by the union representing 29,000 coaches, counselors, lecturers, librarians and professors led to a tentative agreement after one day. However, many of the union members remain indignant over the salaries awarded to top executives — including the CSU chancellor’s compensation package, which is worth nearly $1 million and includes a $96,000 annual housing allowance. The stark pay gap between workers and executives is an issue across many labor sectors, Tilly said. “I think it’s a disgrace that the gap is that big. But I would not put that just on the CSU,” he said. “CEO pay is completely out of control. I think that it sort of spilled over to higher education, with the private higher education institutions in the lead.”

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Chris Tilly on the Impact of Rising Minimum Wages

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UCLA Luskin Urban Planning Professor Chris Tilly spoke to the New York Times for a story about West Hollywood’s minimum wage — at $19.08 an hour, the highest in the country. Many West Hollywood businesses complain that high labor costs put them at a disadvantage compared to competitors in neighboring communities. Recently, workers in several California industries have seen significant pay raises, including fast-food workers, who will soon make a minimum wage of $20 an hour. Tilly, who studies labor markets and public policies that shape the workplace, said research shows that gradual and moderate increases to the minimum wage have no significant impact on employment levels. “The claim that minimum wage increases are job-killers is overblown,” Tilly said. But he added that there are possible downsides to dramatic changes in pay scales. “Economic theory tells us an overly large increase in the minimum is bound to deter businesses from hiring,” he said.

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When Personalized Service Collides With Staffing Cuts

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Urban Planning Professor Chris Tilly spoke to Forbes about staff cuts at Petco, whose business model relies on drawing customers into brick-and-mortar stores for services such as grooming, training and veterinary care. The staffing reductions come as Petco announced that it would be far less profitable this year than previously expected. “It’s ironic because Petco, like lots of other retailers, is saying our competitive advantage is we have stores where you can actually talk to somebody and they know your pet’s name,” said Tilly, co-author of  “Where Bad Jobs Are Better: Retail Jobs Across Countries and Companies.” “But it’s completely at odds with what they’re actually doing with their staff.”

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Tilly Navigates California’s Shifting Labor Landscape

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UCLA Luskin Urban Planning Professor Chris Tilly spoke to the California Sun podcast about the state’s shifting labor dynamics. High-profile strikes, concerns about inflation and the emerging role of technology in the workplace have raised the visibility of worker rights campaigns this year. “The cost of housing, of health care, of college tuition have risen on trajectories that are so out of sync with everything else, including pay,” Tilly said. One experimental approach to addressing these issues is a plan to raise the minimum wage for many fast-food workers in California to $20 an hour and create a nine-member council empowered to make future wage increases. “Having some space where labor interests and management interests and public interests can all sit down at the table and hammer out what might be a good way to go, I think that’s a good thing to do,” Tilly said. “If places like California don’t lead, the prospects for the country look a lot grimmer.”

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Tilly on Labor Actions Spreading Across State and Nation

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Urban Planning Professor Chris Tilly spoke to CNBC about labor actions across California — 55 in 95 locations that commenced just since the beginning of 2023. In Los Angeles, striking Hollywood writers and actors have joined city employees and hotel and hospitality workers on the picket line in what some are calling a summer of solidarity. Union representatives in the state say they are being contacted by organizers from around the country who are seeking guidance on stepping up their own labor actions. “I think California is ahead of the country, but it’s pointing to a crisis that’s likely to happen nationwide,” Tilly said.

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