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Tilly on Apps That Disrupt the Payday Cycle

Urban Planning Professor Chris Tilly spoke to Bloomberg Law about new apps that allow workers to tap into their paychecks ahead of the traditional two-week cycle. At least five tech startups have entered the market, which is primarily aimed at workers who live paycheck to paycheck. By accessing their earnings earlier, people will gain more flexibility in paying bills and avoiding high-interest credit card charges, the services say. However, some observers say that speeding up pay cycles could mask a larger problem: stagnant wages. “The smoothing of pay availability over a pay period is advantageous to people who have very little savings,” said Tilly, a labor economist. “What it doesn’t address is why those people have very little savings in the first place. Low pay is low pay, and this is being intensified by increasing housing, health care and other costs in many places.”


 

DeShazo on Low-Income Workers and Growing Green Economy

JR DeShazo, Public Policy chair and director of the UCLA Luskin Center for Innovation, was featured in a KCRW broadcast discussing the explosion of the green economy. While there are 500,000 green jobs in California, they mostly benefit upper- and middle-class communities, while individuals from low-income communities are hindered by lack of education, language barriers, immigration status and travel distance from job opportunities. Companies like Grid Alternatives and O&M Solar Services are trying to change that by providing paid training for workers from low-income backgrounds. While California’s green energy policies generated 76,000 jobs in their first three years, DeShazo said that legislators are now reexamining the state’s approach to tackle the issue of equity. “The state has, in what I call the second wave of climate policies, gone back through and integrated a social justice or environmental equity component into almost every single policy,” DeShazo said. 


Manville’s Research on Universal Auto Access Published

Associate Professor of Urban Planning Michael Manville’s research on “The Poverty of the Carless: Toward Universal Auto Access” was published in the Journal of Planning Education and Research. Manville and co-authors David King and Michael Smart investigated how vehicle access inequity affects low-income American households. In a society where vehicle access is becoming increasingly necessary, “anyone who can acquire a vehicle will, even if doing so is financially burdensome,” the study explained, noting that “only the most disadvantaged people [are] unable to afford cars.” The research found that “U.S. households without access to a vehicle have steadily lost income, both in absolute terms and compared to those with cars, as the landscapes around them were increasingly shaped to favor the automobile.” Facing objections to universal auto access due to factors such as carbon emissions, the study argued that, “like water and heat, access to cars should be guaranteed and perhaps subsidized for low-income households.” While the long-term goal should be to decrease driving overall, the status quo is comprised of a “small group of people who need vehicles and lack them and a large group who have vehicles and use them needlessly.” Manville and his co-authors recommended treating vehicles as essential infrastructure and working to close gaps in vehicle access for poorer Americans while aiming to decrease overall consumption by the more affluent in the long term. The research was featured a recent Planetizen article and in a Q&A with co-author King. — Zoe Day

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Blumenberg on Cars, Jobs and Low-Income Communities

Professor of Urban Planning Evelyn Blumenberg spoke to Wired about how cars are the best way to connect low-income people to jobs. The article noted that the progressive agenda known as the Green New Deal focuses on public transit and clean vehicles but does not account for widespread inequities in mobility. Blumenberg’s work studied the effect cars have on a person’s ability to get and keep a job. The research showed that low-income people with cars were able to move into better neighborhoods, were less exposed to poverty, and were more likely to find and keep a job. She said this is particularly true for women and caregivers. “Trying to balance unpaid responsibilities and unpaid work is just really really hard while ‘trip chaining’ on public transit, or while the kids are on the back of your bike,” Blumenberg said.