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A Spike in Entrepreneurship Among Latin American Immigrants

Robert Fairlie, chair of UCLA Luskin Public Policy, spoke to the Wall Street Journal about a spike in entrepreneurship among Latin American immigrants, who are starting businesses at more than twice the rate of the U.S. population as a whole. Startups of all types swelled in 2020, as COVID-19 upended work lives, changed consumer behavior and created business opportunities, according to an analysis of U.S. Census data conducted by Fairlie. “COVID has put us on a different trajectory,” he said. One reason that Latin American immigrants have maintained a strong entrepreneurial momentum is their focus on sectors that have experienced increased demand since the onset of the pandemic, including food, services and delivery, Fairlie said.


 

Fairlie Discusses Economic Impact of High Unemployment in California

Robert Fairlie, a professor of economics and public policy, recently discussed the long-term implications should the state’s job growth continue to lag behind the national average. Joblessness reduces overall earnings, said Fairlie, chair of UCLA Luskin Public Policy, and that lowers consumer demand and hinders investment. “There is a negative multiplier effect on the state economy from the higher unemployment rates we are seeing,” he said. The story in the New York Times, which was picked up by other news outlets, focuses on the impacts of California’s high unemployment rate — 5.1% in January, which exceeded the national rate of 3.7% and was behind only Nevada’s rate of 5.4%. Among the contributing factors explored in the story are layoffs in the technology sector, a slow rebound in Southern California from prolonged strikes in the entertainment industry and varying demand for agricultural workers.


 

Heated Debate as Cal State Union Votes on a New Deal

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.”


 

On the CSU Picket Line, Anger Over Pay Gap

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.”


 

 

Chris Tilly on the Impact of Rising Minimum Wages

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.


 

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. 


 

When Personalized Service Collides With Staffing Cuts

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.”


 

Europe’s Challenge of Fostering Growth, Sharing the Wealth

Michael Storper, distinguished professor of urban planning, spoke to the podcast Regio Waves about strategies Europe can employ to foster growth without exacerbating social inequality. In parts of Europe, participation in the labor force is flagging and wages are stagnant. One factor contributing to the malaise is the rise of artificial intelligence. “This is the moment for Europe to shape its future with artificial intelligence and to make sure that it is deployed in a way that augments people’s skills,” Storper told the podcast, which is produced by the European Commission. “We have to think about the interconnectedness of all territories,” he said. “That means that even as we focus on making Europe dynamic and innovative, mostly in the big and middle-sized cities, we want to make sure the other territories are maintained in a way that makes their conditions of life good and makes the human potential of every new generation there ready to contribute to the overall European dynamic.”


 

Tilly Navigates California’s Shifting Labor Landscape

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.”


 

Tilly on Labor Actions Spreading Across State and Nation

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.