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Experts Decry Decision That Would Gut L.A.’s Affordable Housing Plan

Experts at the Lewis Center for Regional Policy Studies based at UCLA Luskin are at the forefront of research relating to affordable housing, and this work served as the basis for an opinion piece in the Los Angeles Times questioning a city planning department decision that would shield some wealthier neighborhoods from multifamily development. Aaron Barrall and Shane Phillips of the Lewis Center’s Housing Initiative write that a review of data “shows that L.A.’s current capacity for development … is disproportionately concentrated in lower-income neighborhoods and communities of color.” Half of this capacity is in the poorest quarter of Los Angeles, while the wealthiest 10% furnishes less than 1%. Although the authors call the situation “disheartening,” they say the city still has time to adopt a strategy to add homes where they’re needed most. “Until L.A. takes those steps,” they note, “very little about this housing plan can be called fair.”


 

A ‘Hesitantly Bullish’ Take on U.S. Unemployment Trends

A WalletHub article on U.S. states where unemployment is ticking up cited Robert Fairlie, chair of Public Policy at UCLA Luskin and a member of the National Bureau of Economic Research. “I’m hesitantly bullish on the job market for 2024,” said Fairlie, explaining that national jobless rates are still relatively low and are not likely to increase rapidly in the coming year. But he added, “The major problem many people have is that their wages are not increasing as fast as inflation. That is making it hard for people to afford to live, especially in high-cost housing markets.” Moving savings out of non-interest-earning accounts and into money market funds that pay a higher interest rate is one way that people can protect their finances, Fairlie said. 


 

New Book by Fairlie Reveals Risks and Rewards of the U.S. Startup Economy

A new book co-authored by Robert Fairlie, chair of Public Policy at UCLA Luskin, provides a broad view of entrepreneurship that challenges the assumption that startup companies in the United States create jobs and power economic growth. Federal, state and local governments spend billions of dollars each year on incubators, loan programs, tax breaks and investor incentives to encourage the formation of job-creating businesses, yet these expenditures are often made without knowing whether they lead to lasting, decent-paying jobs. In “The Promise and Peril of Entrepreneurship: Job Creation and Survival Among US Startups,” published by MIT Press, Fairlie and co-authors Zachary Kroff, Javier Miranda and Nikolas Zolas use a comprehensive new data set to provide clarity. Their findings show that startup job creation and survival rates are much lower than those typically reported by federal sources. Official statistics indicate that each startup creates six new jobs on average, and 50% of startups survive up to five years. However, those numbers reflect only new businesses that have employees, not the millions of startups that launch without employees every year, the authors found. “Understanding the early-stage dynamics of entrepreneurship is important,” they write. “Starting a business is difficult, with many potential barriers and risks,” including the legal requirements and resources needed to hire employees. The authors also explore who owns startups, focusing on differences by race and ethnicity and documenting how some minority groups face significant barriers to entrepreneurship. Fairlie’s book is among five recently getting capsule reviews by the Financial Times, which lauds its use of reliably sourced data and says it will “help those seeking to nurture an entrepreneurial culture themselves: the policymakers, academics, incubator operators and business degree students.”


Rowe Says S.F. Moratorium on New Pot Shops Could Hurt Customers

UCLA Luskin lecturer Brad Rowe recently commented on a decision by the San Francisco Board of Supervisors to create a moratorium through 2028 on new applications for retail cannabis licenses in the city, describing it as “old-school protectionism” of retail license holders. California’s entire cannabis industry is struggling to stay profitable and this action could help retailers, but Rowe told SF Gate it is likely to increase prices. “There is a way to build value by restricting access,” Rowe said. “The problem is who is going to pay for it? Consumers are the ones who are going to pay with higher prices.”


 

Robert Fairlie Appointed Chair of Public Policy at UCLA Luskin Distinguished scholar has nearly three decades of teaching and research in the University of California system

By Stan Paul

Robert Fairlie, longtime professor of economics at UC Santa Cruz and a distinguished senior scholar, has been recruited to serve as the next chair of UCLA Luskin Public Policy.

Fairlie, a member of the National Bureau of Economic Research (NBER), is a “prominent and prolific scholar who brings with him a strong portfolio of research interests, a record of policy-relevant and impactful research findings, and an overall commitment to social justice,” said Interim Dean Anastasia Loukaitou-Sideris in announcing his appointment.

“Robert Fairlie is one of the most productive and most cited economists in the world,” said Mark A. Peterson, a past chair and current interim chair. “He personifies the ideal public policy faculty member, generating robust evidence on major issues of the day using sophisticated and innovative research and communicating directly with policymakers to inform their decision-making.” Peterson is a professor of public policy, political science and law.

Fairlie’s research has been published in leading economic and policy-related journals. Topics include public policy, entrepreneurship, education, information technology, labor economics, developing countries and immigration, typically with close attention to the implications for racial, ethnic and gender inequality.

He has strong ties to the state, arriving in California at age 2 and growing up in San Jose. He attended Stanford University, earning a bachelor’s in economics. He previously held visiting academic positions at Stanford and UC Berkeley. He also serves on the Faculty Council of the UC Sacramento Center.

Outside California, he has held visiting appointments at Yale and Australian National University. He earned his master’s and doctoral degrees from Northwestern University.

A new book on entrepreneurial job creation and survival — seven years in the making — will soon be published with MIT Press. Fairlie and his co-authors at the U.S. Census Bureau created a new dataset to track the universe of startups in the country — the Comprehensive Startup Panel, or CSP.

“We find that startups, on average, create fewer jobs and have lower survival rates than previously documented,” Fairlie said.

The COVID-19 pandemic also has determined the direction of some of his research, which has had substantial academic and policy influence.

“At the start of the pandemic I realized that, from all the work that I had done in the past, I was in a good position to compile and analyze data on the first impacts of COVID-19 on racial and gender inequality in business ownership, unemployment and work effort,” he said.

As the pandemic progressed, Fairlie said he also became interested in the $800 billion Paycheck Protection Program (PPP), examining whether PPP funds were distributed proportionately to communities of color and finding delays in equitable distribution.

Fairlie said he recently has been routinely contacted by both the U.S. President’s Office and Vice President’s Office for an update on his research findings amid the pandemic’s continued impact on racial inequality in entrepreneurship.

“My latest research that goes through December 2022 shows promising improvement in the number of Black, Latinx and Asian business owners,” he said. “For all three groups, business owner levels are higher now than where they were at before the pandemic started. In contrast, the number of white business owners is down from pre-pandemic levels.”

Fairlie’s award-winning research and efforts to inform policymakers in California have also garnered recognition. He has provided testimony before the California State Legislature on several occasions. A joint resolution from the State Assembly and State Senate commended his “innumerable achievements and meritorious service to the State of California and beyond.”

On the national stage, Fairlie has testified before the U.S. Senate, U.S. House of Representatives and U.S. Department of the Treasury. He has received funding from the National Science Foundation, National Academies and Russell Sage Foundation, as well as numerous government agencies and foundations. Most recently, his work was cited in the 2023 edition of the “Economic Report of the President.”

Fairlie is regularly interviewed by print and online media about economic, education, small business, inequality and policy issues.

Fairlie’s scholarly work will continue when he takes his new post this summer.

“Luskin is an amazing place with so much timely and important research going on. I look forward to contributing to those efforts as part of the team,” he said. “I am also looking forward to working at one of best and most exciting universities in the world.”

Akee Is Among Equitable Growth Award Recipients

Randall Akee, associate professor of public policy, is among those sharing this year’s research grants totaling more than $1 million from the Washington Center for Equitable Growth. The funding is for research relating to inequality’s impact on economic growth and stability. A study of “deaths of despair” among Native Americans, particularly women and girls, will be conducted by three academic researchers and Akee, who is chair of the American Indian Studies Interdepartmental Program at UCLA. In their funding proposal, the researchers said they plan to investigate why such deaths are proportionately higher for Native Americans than among other ethnic groups in the United States. Researchers will examine whether the known predictors of a death of despair for white constituents, especially men — joblessness, high rates of unemployment — are different than those for Native American women and girls. The study will also focus on the oil fracking industry and whether fracking in proximity to Native American lands induces more human trafficking activity. This, in turn, might also induce coping behaviors such as increased alcohol and substance use that could lead to higher rates of suicides among Native American women and girls, according to the research proposal. Equitable Growth has seeded more than $8.8 million to nearly 350 scholars through its competitive grants program since its founding in 2013. According to the organization’s news release, this year’s 42 grantees include economists and social scientists who currently serve as faculty or are postdoctoral scholars and Ph.D. students at U.S. colleges and universities, as well as scholars from government research agencies.

High Price of Used Cars Impacts Low-Income People Most, Blumenberg Says

Since the return to a semblance of normal life after the pandemic lockdown, rising demand for vehicles, electronic parts shortages and shipping delays have driven up prices for new and used cars alike. This leaves low-income people at a particular disadvantage, Evelyn Blumenberg, an urban planning professor at UCLA Luskin, told the Tampa Bay Times. “Low-income houses just do better with a car,”  she said. “It’s higher rates of employment, better neighborhoods.” Blumenberg pointed to her research linking cars to stability — even in regions with robust public transit  — and showing that losing a car can spell disaster for people whose finances are stretched thin. Preliminary research data also show more people taking out auto loans, with higher dollar amounts, in lower-income neighborhoods that are historically home to cash buyers, says Blumenberg, who is director of the Lewis Center for Regional Policy Studies.


 

Faculty, Students United by Their International Interests  

A desire to bring about change in a world that sorely needs it drew three UCLA Luskin undergrads to the Global Lab for Research in Action.

Joey Lu, Karlinna Sanchez and Anjani Trivedi spent their senior year immersed in research aimed at improving the health of women and children around the world — the primary focus of the Global Lab, which was launched at UCLA Luskin in 2019. They translated scholarly texts into persuasive op-eds and policy briefs, and used their skills in digital media and design to increase the audience for the lab’s important work.

“I really like that the Global Lab focuses on under-researched, hard-to-reach populations and doesn’t treat them like people cast aside but like people we could learn from,” Sanchez said.

The Global Lab is one of several UCLA Luskin entities with a distinctly international focus. The Latin American Cities Initiative, established by Associate Professor Paavo Monkkonen in 2019, fosters cross-border collaboration among students, scholars and professionals in the planning and policy fields. Often referred to as Ciudades, the initiative puts an emphasis on discerning shared lessons from different urban cultures. 

Since 2014, Global Public Affairs has offered Luskin School graduate students a chance to study abroad, learn from top scholars from across the UCLA campus and earn certificates in any of several international concentrations. GPA is led by Professor Michael Storper, who was also instrumental in developing an Urban Planning dual-degree program that includes a year studying in Paris.

UCLA Luskin also broadened its geographic scope with two ventures helmed by Adjunct Professor of Social Welfare Helmut Anheier: the transdisciplinary social sciences journal Global Perspectives, published by University of California Press, and the Berggruen Governance Index, a data-rich evaluation of the effectiveness of governments worldwide.

At the Global Lab, research on the well-being of vulnerable people around the world is led by Public Policy Professor Manisha Shah, the center’s director and an expert in microeconomics, health policy and international development. 

That research portfolio resonated with the trio of interns. 

Lu said a trip to Ghana after her freshman year opened her eyes to the powerful forces that keep some countries mired in poverty, and led her to triple major in public affairs, sociology and international development. 

Childhood trips back to her birthplace, India, exposed Trivedi to different lifestyles, heightening her interest in comparative economics and helping her think about her own place in the world.

Sanchez grew up in American Samoa, a U.S. territory that “everyone forgets about,” where their public school lacked tables and chairs and their classmates fell into apathy.

“I just see so much potential in my peers, in my population, but no one invests in them,” said Sanchez, who uses they/them pronouns.

The three were attracted to the Global Lab’s research but also its call to action. They worked closely with founding Deputy Director Janine N’jie David MPP ’14, and credited her with shaping a shared public affairs capstone project that would steep them in the research that intrigued them while tapping into their own talents to advance the lab’s mission.

The interns’ aim was to communicate the Global Lab’s work in compelling ways while refining its brand and digital presence. Over the year, the team revamped the lab’s website, stepped up its social media presence, created monthly newsletters and supported its events, taking care to measure the impact of each step of the communications strategy. 

In the end, Trivedi said, “it’s the people that have made this experience the most rewarding. This is a company culture where everyone is so passionate about what they do and they have this intrinsic motivation to create change.”

Tilly Wins Award From Labor Relations Group

Urban Planning chair Chris Tilly has been named a 2022 Academic Fellow by the Labor and Employee Relations Association (LERA). The award, which recognizes scholars who have made contributions of unusual distinction to the field of labor and employee relations, was given at the association’s annual membership meeting, held virtually from June 3-5. Françoise Carré of the University of Massachusetts, Boston, was also honored with an Academic Fellow award. Tilly and Carré are co-authors of the award-winning 2017 book “Where Bad Jobs Are Better,” which identifies room for improvement in the U.S. retail sector. Citing a rigorous study of working conditions in seven countries, the authors conclude that low wages, unpredictable work schedules and limited opportunities for advancement are not inevitable characteristics of the retail sector. Tilly and Carré also collaborated on a chapter in 2020’s “Creating Good Jobs: An Industry-Based Strategy.” The LERA Academic Fellow awards are given annually to scholars who have served more than 10 years studying disciplines including industrial relations, labor law, economics, human resources, business, sociology, political science and organizational behavior. The nonprofit association also bestows Fellow Awards on practitioners in the labor and employment relations field. A full list of the award winners is available on the LERA site.


 

Bau Awarded Sloan Research Fellowship

Assistant Professor of Public Policy Natalie Bau has received a 2022 Sloan Research Fellowship, one of the most competitive and prestigious awards available to early-career researchers. Bau, who has a joint appointment in the department of economics, is one of eight young UCLA professors to receive the fellowships, making UCLA No. 1 among U.S. and Canadian colleges and universities in the number of new fellows. Bau studies a variety of topics in development and education economics, with an emphasis on the industrial organization of educational markets. Her research has looked at how cultural traditions affect economic decision-making, how interpersonal skills facilitate intergenerational investment, whether government policy can change culture, and the effects of human capital investment in countries with child labor. Bau is affiliated with the Center for Economic and Policy Research and is a faculty research fellow at the National Bureau of Economic Research. This year, 118 scientists and scholars received a Sloan Research Fellowship. “Today’s Sloan Research Fellows represent the scientific leaders of tomorrow,” said Adam Falk, president of the Alfred P. Sloan Foundation. “As formidable young scholars, they are already shaping the research agenda within their respective fields — and their trailblazing won’t end here.” — Stuart Wolpert

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