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

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.”


 

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.


 

Zepeda-Millán on Effects of the LAUSD Strike

Chris Zepeda-Millán, associate professor of public policy and chair of UCLA’s labor studies program, was cited in an article by The Progressive about how school staff won key victories after a major strike in the Los Angeles Unified School District (LAUSD). In March, members of Service Employees Union Local 99 were able to negotiate with the LAUSD and approve a new contract that will increase the average annual salary from $25,000 to $33,000, increase the minimum wage to $22.52 and provide other benefits. Zepeda-Millán said that the labor action provided an advantage to the United Teachers of Los Angeles (UTLA) in their own negotiations with the district, which have led to a tentative agreement. UTLA is larger than Local 99 and helped elect many school board members.


 

Tilly Explains Labor Shortage Patterns

Urban Planning Chair Chris Tilly was featured in a Vox article discussing labor shortages as many low-wage workers demand better working conditions. Nearly 16 million Americans quit their jobs between April and July, highlighting the mental and physical fatigue experienced by many, as well as the desire to improve work environments. “For a lot of people, it’s been traumatizing,” Tilly said. Essential workers in California experienced a 30% increase in deaths in the first 10 months of the pandemic, according to an analysis of public data. Many low-wage jobs lack benefits such as health insurance and sick leave, and the work itself can be physically and emotionally taxing. “People settled for that, but they weren’t necessarily thrilled with those jobs,” Tilly explained. He also pointed out that any increases in hourly wages are often countered by inflation. “The labor shortage giveth, and the end of the labor shortage taketh away,” Tilly said.


Tilly on Boost in Workers’ Bargaining Power

Urban Planning Chair Chris Tilly was featured in an Associated Press article about the growing strength of union workers. A nationwide worker shortage spurred by the COVID-19 pandemic has given union workers an opportunity to demand higher wages and better working conditions. “Low-end jobs more typically have a labor surplus,” Tilly said. “But there are also shortages at higher skill levels, including jobs where there are chronic shortages like nurses, machinists and teachers.” Tilly predicted that, as the job market starts to slow in coming months, union workers may lose some of their newly claimed bargaining power. “As long as the economy is growing — and growing at a relatively vigorous pace — that’s going to continue helping workers, and for that matter, dealing unions a better hand, too,” he explained. “But we are not necessarily in a new era that’s going to look exactly like it has for the last few months.”


Tilly Unpacks Frustrations of Retail Workers

Urban Planning Professor Chris Tilly was featured in a Business Insider article about frustrated retail employees who are leveraging the demand for labor and fighting for increased pay, benefits, paid sick leave and childcare. Tilly explained that “consumer demand appears to be outpacing retailers’ ability to staff stores,” which gives more leverage to workers. “I don’t think we’re at a point where workers have permanently gained the upper hand, but I would be cautious about saying exactly when the power is going to shift back more to employers,” he said. According to Tilly, the central problem is that “retailers are having trouble attracting workers at the rates of pay that they’re offering.” For years, retail workers have expressed their frustrations about low wages, stress and lack of respect in the workplace. “It’s not surprising that these kinds of jobs are not appealing to workers who have some level of choice in the matter,” Tilly said.


Anheier on German Economic and Social Reform

“For government, the most important objectives are to reverse two key trends: rising economic inequality and declining social mobility,” said Helmut Anheier, adjunct professor of social welfare, in a recent Project Syndicate interview on German economic and social reform. Anheier, who also holds posts at Hertie School of Governance and Heidelberg University in Germany, argued that policies that could advance these goals include a livable minimum wage, reforms to the system for delivering unemployment and welfare benefits, and massive investments in education and skills training. Anheier, editor-in-chief of the new UC Press publication Global Perspectives, also commented on a number of topics including globalization, philanthropy in the time of COVID-19 and lessons to be learned from Germany’s past. “Germany has come to terms with its history … but it still hasn’t developed a clear vision of a multi-ethnic society – vital to prevent the kind of divisiveness one sees today in the United States and United Kingdom.”


 

Tilly Sees Benefits of Perks for Theme Park Employees

Chris Tilly, professor of urban planning, is quoted in a Los Angeles Times story about the benefits of perks that include free passes and access to special events and attractions for employees working at Southern California theme parks. “It does enable you to hold on to good employees, but it also helps motivate people,” said Tilly, who studies labor markets and public policies directed toward better jobs. “You want them to be part of the team, and they are jazzed to be working there.”