The Birthrate Is Plunging. Why Some Say That’s a Good Thing.
Interview featuring James Lee, fifth-year economics student, who will teach a research course through UCLA’s Collegium of University Teaching Fellows Program exploring this topic

Citlalli Chávez-Nava
Is going to college still worth it? What can government policy do to improve educational outcomes? And how do researchers measure the real return on education?
Those are the kinds of questions that James Lee, a fifth-year doctoral candidate in UCLA’s Department of Economics, will explore in his undergraduate students in his course, “Research Practice 98T: Economics of Education.”
Lee was selected as a teaching fellow in UCLA’s Collegium of University Teaching Fellows (CUTF) program, a campuswide initiative coordinated by UCLA’s Learning and Teaching Center that brings together a group of innovative graduate student instructors. Fellows design and teach one-time undergraduate courses that connect cutting-edge research and creative practice.
CUTF courses, offered each winter and spring, also give undergraduates an opportunity to engage directly with faculty-level research while learning what graduate study entails.
Lee’s course is designed for students interested in education policy and economic research. The class will examine economics research spanning the full arc of education —from preschool to college — exploring both theory and real-world outcomes. Along the way, students will gain hands-on empirical research skills. They will learn to code in R, a free, open-source programming language used for data analysis and visualization, work with public microdata and write a literature review. By the end of the quarter, students will submit a peer-reviewed policy proposal aimed at increasing educational attainment.
In the interview below, we learn more about Lee’s upcoming class, how he became interested in economics and education policy and his future plans.
The interview was edited for length and clarity.
How did you become interested in researching education policy and its economic impacts?
I’ve always enjoyed teaching students, so I think when I was searching for a research topic I was naturally drawn to education. I specifically research community college and transfer students. Interestingly, this focus began through a random conversation I had with a transfer student here at UCLA about the Transfer Admission Guarantee Program known as TAG. I had never heard of a guaranteed admission program, so that led me to look further into the university and community college systems and student choices and outcomes.
You say your class will explore the full arc of education beginning in preschool. Does preschool lead to specific to educational outcomes?
There is quite a bit of research and experiments done for young children and early education. For example, pre-K and universal pre-K programs have been found in several papers to have very high economic returns — parental income increased due to parents having more time to work and children’s non-cognitive skills increased from going to preschool. The “Heckman Curve,” developed by economist James Heckman, illustrates that investments in early childhood education have the highest returns to society, and that the returns decline with age.
Plus, I think it would be a more complete class if we went through the whole range of education – from preschool to college.
What are some of the other topics you’ll explore during lectures?
The class will start with some basic economic theory, technical skills and definitions to catch everyone up to the same level. Then we will learn about different economic theories about education before going through research related to different education levels, like preschool, elementary, middle, high school and college. We’ll discuss different policies, such as universal pre-K, academic tracking in schools and whether college should be tuition free.
As college students, I’m sure students will also be curious about discussing things like whether the friends you make or the major you study or your professors impact long-term outcomes like earnings.
I’ve also learned a lot from talking to all sorts of students at UCLA since everyone has their own unique experience, so I also hope every student feels empowered to share their own experiences in my class.
Your class concludes with a policy proposal. Why do you think it’s important to include an assignment of this type?
I wanted to include a final assignment that could demonstrate what the students have learned throughout the class while also putting together a document that could serve as a writing sample for their future endeavors. I also think it’s important to be able to put together an organized document that can be used to pitch an idea to a broad audience and provide logical explanations in a succinct manner.
…
What led you to pursue your doctorate in economics at UCLA?
Honestly, I had never touched economics before college, but once I entered college, I thought I’d give it a try. I really enjoyed it because it’s a quantitative social science. I was drawn to social science research in undergrad but wasn’t sure about academia, so after graduating I worked as a research associate at the Federal Reserve Bank for two years before I decided I wanted to pursue a Ph.D. Ultimately, I wanted to do research about people and policy that could make things practically better, so an economics Ph.D. seemed to be the right fit.
What is your dissertation topic?
In recent years, more schools and states are encouraging more community college students to transfer. Given this push, a question that has come up is what might happen to the students already present at a receiving institution.
My dissertation takes a first step in answering this question by investigating the peer effects between community college transfer students and freshman admits at UCLA. I find that, on paper, academic outcomes improved for freshman admits by having more transfer students in their classes, but I find evidence that there is no actual ‘gain’ in knowledge. While my interview and survey-based findings would suggest that there could be beneficial effects from these two groups interacting, it appears that these groups do not interact much in the classroom. If anything, the only interaction is due to the “curve” present in certain classes and departments.
Despite this, I find no evidence of harmful effects on initial post-grad outcomes and given the on-paper benefit for academic outcomes and the massive benefit for transfer students to be able to transfer to a school like UCLA, I conclude that having transfer programs does not hurt the students already present at a given university.
I hear you just landed a job, where are you going next?
I’ll be an assistant professor in the economics department at Pepperdine University next year.
Do you feel the CUTF program has helped you grow as an instructor?
I think the CUTF program has been great to learn about properly organizing a class, such as developing the syllabus, preparing lesson plans and learning ways to engage students.
It’s also been great to be with other fellows who are also designing a class for the first time in other fields. I’ve also learned about other resources that I admittedly hadn’t really considered before — I’m very excited to use my new knowledge and skills once I start my class next quarter.
…
Lastly, is college still worth it? What would you say to those who are skeptical about the value?
I’d say it’s still worth it, but there’s a pretty big asterisk about that statement. From a data perspective, the benefits still outweigh the costs on average. Though, college is what you make of it – such as what you choose to study, who you become friends with, how you spend your time both inside and outside the classroom and what opportunities you find.
Most students would say what they learn in class feels unapplicable to their future job. Depending on your field or job, that could very well be true. But one economic theory of education says that a college degree is a signal that you are smart and capable enough to make it through the challenging environment that is college. From that point of view, if you know how to market yourself well, you could achieve high returns no matter what you studied.
Another economic perspective tells us college is a time to invest in yourself – your human capital. That’s both your cognitive skills as well as your non-cognitive skills. But again, it’s what you personally make of your time in college.
Lee’s 2026 spring quarter class is listed as: “Research Practice 98T: Economics of Education, SEM 1 (Lee) – Tuesday/Thursday 10-11:50am.” A listing of all CUTF courses is available: here.
Her research applies state-of-the-art empirical methods to identify governmental constraints on redistributive capacities and how targeted interventions can shape the life trajectories of individuals from disadvantaged backgrounds

UCLA Social Sciences
UCLA Department of economics faculty member, Juliana Londoño-Vélez, joins three UCLA faculty, among the 126 scientists and scholars from 44 colleges and universities across the United States and Canada to receive 2026 Sloan Research Fellowships announced Feb 17.
The Sloan Fellowships are among the most competitive and prestigious awards available to early-career researchers in the fields of economics, chemistry, computer science, Earth system science, mathematics, neuroscience and physics. They are considered both a recognition of existing accomplishments and a stepping stone to world-changing leadership and discovery, with many fellows going on to earn Nobel Prizes (59), National Medals of Science (72) and Fields Medals in Mathematics (17).
Fellows receive a two-year, $75,000 award, which can be used flexibly to advance their research.
An applied microeconomist, Londoño-Vélez uses administrative data and innovative experimental design, to investigate how tax and social policies can reduce poverty and inequality and promote upward mobility in Latin America. Her research applies state-of-the-art empirical methods to identify constraints on governments’ redistributive capacity and to evaluate how targeted interventions can shape the life trajectories of individuals from disadvantaged backgrounds.
In her recent research, Londoño-Vélez found that Ser Pilo Paga, a financial aid program in Colombia, significantly increased enrollment in higher education, leading to lasting gains in earnings and upward mobility and narrowing socioeconomic disparities. With support from the Sloan Fellowship, she plans to advance her research in two areas: examining how higher education positively benefits the lives of people in non-monetary ways and explore the effects of reproductive health care policy on women’s physical and mental health.
“The Sloan Research Fellows are among the most promising early-career researchers in the U.S. and Canada, already driving meaningful progress in their respective disciplines,” said Stacie Bloom, president and chief executive officer of the Alfred P. Sloan Foundation.”We look forward to seeing how these exceptional scholars continue to unlock new scientific advancements, redefine their fields, and foster the well-being and knowledge of all.”
Londoño-Vélez received a Ph.D. in economics from the UC Berkeley in 2019 and joined UCLA in 2020 as an assistant professor. She teaches undergraduate and graduate public economics courses.
Londoño-Vélez joins nine previous Sloan fellows in UCLA’s Department of Economics: Yotam Shem-Tov (2025), David Baqaee (2022), Natalie Bau (2022), Denis Chetverikov (2019), Pablo Fajgelbaum (2017), Jonathan Vogel (2012), Dora Costa (1999), Lee Ohanian (1998) and Andrew Atkeson (1995).
UCLA Newsroom’s story announcing Londoño-Vélez Sloan Research Fellowship is available here: The home of next-gen genius: 3 UCLA professors named Sloan Research Fellows.
The competition encourages undergraduate students to learn about the U.S. economy, monetary policymaking and the role of the Federal Reserve System

Citlalli Chávez-Nava
UCLA secured third place in the prestigious National College Fed Challenge, an annual team competition that invites undergraduate students to learn about the U.S. economy and monetary policymaking, simulating the work of the Federal Open Market Committee (FOMC). The finals were held in Washington, D.C., on Nov. 21.
This year’s UCLA team included five student presenters chosen from a group of 25 students enrolled in a spring quarter course that prepares students for the fall competition. During the first round of the challenge, the UCLA team recorded a video outlining their federal policy proposal, opting to hold interest rates steady, a decision which differed from both the Federal Reserve (the central bank of the United States) and many other university teams who proposed cutting interest rates.
“This difference reflected the students’ analysis that dealing with inflation was still a pressing concern even as the labor market began to weaken,” said Chris Surro ‘20, assistant adjunct professor of economics at UCLA and the team’s head coach.
After the video submission, UCLA’s team moved on to the semifinal round, which consisted of a remote question and answer sessions with judges from the Federal Reserve system and eventually to the final round in Washington D.C., where students had to perform their presentation in person followed by live questions from judges.
“Our UCLA team had great teamwork and chemistry. They were extremely well prepared and showcased tremendous poise throughout the competition,” said Surro. “During our preparation, we emphasized ‘sounding like an economist,’ using the jargon and language that economists use, the students accomplished this extremely well.”

Surro said UCLA’s team also relied on other classmates who worked behind the scenes, helping with research, making slides and graphs and writing scripts. Student teams were evaluated on their economic analysis, responses to the judges’ questions, teamwork and presentations.
Surro has advised the team since UCLA entered the competition in 2021. Initially, participation in the Fed Challenge was an unstructured, informal effort. Today, under Surro’s guidance, students prepare for the challenge through a dedicated course and collaborate closely with faculty and peers.
Third-year economics major Terrence Yu, one of this year’s UCLA team members, reflected on his recent experience.
“The most memorable part of the Fed Challenge was stepping inside the Federal Reserve building, where our team met Fed Governor Michael Barr,” he said. “Presenting our monetary policy recommendation in the actual FOMC boardroom to Federal Reserve economists, alongside my teammates, was truly a surreal and unforgettable experience.”
Yu said participating in the competition provided him with invaluable insights into economic policymaking.
“Before the Fed Challenge, I viewed monetary policy as fairly black-and-white, but stepping into the shoes of the FOMC showed me how nuanced and complex policymaking truly is. In an environment like today, every decision requires rigorous analysis of competing data, careful judgment under uncertainty and an awareness that every choice will be scrutinized,” he added.
The College Fed Challenge organizers praised the UCLA team for being so competitive despite this being only their fifth year in the program. Earlier this fall, UCLA’s Fed Challenge team won their division title, which earned them a spot in the finals.
In total, UCLA’s team has won four division titles and has earned two third place finishes during the final competition. This year’s College Fed Challenge included 139 schools from 36 states across the nation. Pace University earned first place, and Harvard College placed second.
“I thank these students for the dedication, creativity, and analytical skills they demonstrated as they grappled with real-world economic challenges,” said Federal Reserve Chair Jerome H. Powell in a statement.
Yu said he encourages sophomores and juniors interested in economic policy to apply to the class when applications open during winter quarter.
“The Fed Challenge offers a rare chance to dive deeply into both theory and real-world application while developing valuable technical and soft skills. It’s also one of the few opportunities to be part of a smaller, tight-knit economics class at UCLA and build lasting friendships.”
UCLA’s 2025 National College Fed Challenge Team:
Student team members: Blake Balak (4th year), Jiya Barman (4th year), Terrence Yu (3rd year), Loretta Lye (4th year), Valentina Alencar Barros (4th year).
Student support team: Michelle Chen, Matthew Cherfane, Christian Helleberg, Anshika Khandelwal, Misha Canin, Sebastian Diaz, Kristina Gharibyan, Lily Aronovitz.
Coaches:
Head Coach: Chris Surro ’20, Adjunct Assistant Professor
Assistant Coach: Ali Haider Ismail, UCLA PhD student
UCLA’s Department of Economics also thanks their Board of Visitors members John Bucher, Terry Kramer, Albert Lee, Elizabeth Obershaw and Tracy Stuart for funding the trip.
The UCLA study quantifies the benefits of federal programs that fund contraception for low-income Americans

Citlalli Chávez-Nava
A UCLA clinical trial finds that reducing the costs of contraception results in 16% fewer unintended pregnancies and 12% fewer abortions among low-income women after two years.
In a working paper published by the National Bureau of Economic Research (NBER), the study offers rigorous experimental evidence that directly connects financial access to contraception for a broad population of women in the United States, helping to answer questions of long-standing academic and policy interest.
“According to our findings, eliminating financial barriers allowed women to choose more effective contraception methods and reduce undesired pregnancies and abortions,” said Martha Bailey, professor of economics and director of the California Center for Population Research, and the study’s lead author.
In the U.S., the rate of unintended pregnancy is more than five times higher among women in poverty than women with incomes at least two times the poverty level. The study suggests that the high cost of reliable contraception is an important contributor.
The findings are particularly relevant for policy discussions surrounding ongoing cuts to the Title X program, which serves millions of low-income Americans.
Removing all contraceptive costs through M-CARES study
The findings were based on the Michigan Contraceptive Access, Research, and Evaluation Study (M-CARES) which recruited low-income women at Title X medical providers between 2018-2023. During this period, randomly assigned participants were given vouchers that made any method of contraception free or sharply discounted. The goal of the M-CARES study was to remove cost barriers for all methods available at Title X providers and to follow changes in the choice of contraception and pregnancy outcomes over time.
The findings were based on the Michigan Contraceptive Access, Research, and Evaluation Study (M-CARES) which recruited low-income women who sought care through Title X, a federal program that subsidizes reproductive health and family planning services for low-income Americans, between 2018 and 2023. During this period, randomly assigned participants were given vouchers that made any method of contraception free or sharply discounted. The goal of the M-CARES study was to remove cost barriers for all methods available at Title X providers and to follow changes in the choice of contraception and pregnancy outcomes over time.
Based on data analysis over a two-year period, the study found:
“It’s important to note that the effects of the study last well beyond the availability of the subsidies. The effects of increasing affordability extend over a two-year period and likely beyond,” said Bailey.
Furthermore, unlike previous academic studies, the M-CARES survey findings include high-quality administrative micro-data offering a more comprehensive view of contraceptive use.
“Most studies have only been able to document changes in childbirth. Because we had administrative records, we were able to see changes in pregnancies and abortions, which are severely underreported in surveys,” added Bailey.
Timely findings for the 2026 Congressional budget adoption
In March of this year, the Trump Administration announced a freeze of close to $35 million in funding to Title X grantees. This freeze left California, among seven other states, without Title X funding. And there is a strong possibility this program will continue to face cuts or complete elimination for the upcoming 2026 federal fiscal year.
Bailey thinks that further disruptions to Title X grantees will be devastating for low-income women, worsening not just their health, but their social and economic outcomes as well as resources for their children.
“Generalizing our survey findings, we see that keeping Title X sliding scale costs as they stand now, results in significantly higher rates of unintended pregnancy among low-income women and causes more abortions nationally than if contraception were completely free,” said Bailey.
Instead, Bailey says the M-CARES evaluation provides evidence that federal Title X dollars help U.S. families and expanding the program would also have benefits.
“The Title X program is a cost-effective way to empower parents to choose their families according to their own desires,” she said. “Preserving Title X and expanding its generosity would strengthen the reproductive health safety net.”

Martha Bailey is breathing history into data. The UCLA economic historian, demographer and labor economist is stitching together the rich tapestry of American life across four generations through her visionary leadership of LIFE‑M, a unique data infrastructure project linking millions of birth, marriage and death records with census information on everything from household size and wages to educational attainment.
The goal? To help researchers across the country better ask and answer big questions about how economic, educational, health-related and environmental circumstances and policies have shaped people’s lives from the cradle to the grave since the dawn of the 20th century.
“The biggest changes in our society and economy don’t play out over a decade,” says Bailey, who also directs the California Center or Population Research at UCLA and is a research associate at the National Bureau of Economic Research. “They play out over multiple generations as part of ongoing, slow-moving transformations.”
That’s why the datasets of LIFE-M (short for Longitudinal, Intergenerational Family Electronic Micro-database) are so revolutionary. With the help of machine learning, the project compiles reams of intergenerational public information that present a grand survey of life changes — from great-grandparents born at the turn of the century to their grandchildren born in the 1970s.
For instance, Bailey says, LIFE-M data clearly reveal how government investment in education has boosted economic opportunity — from the early 20th century, when public funding of K–12 schools allowed lower-income children to escape the circumstances of their birth, to the later years of the century, when investment in public higher education further encouraged mobility, reducing the role of family privilege.

Similarly, by compiling data over multiple generations in a particular community, the project offers an expansive picture of people’s quality of health and aging. This can be particularly helpful, Bailey says, when scholars are assessing how environmental exposures may contribute to cognitive conditions like Alzheimer’s and Parkinson’s over time or when they’re tracking the evolution of a cancer cluster in a newly industrialized area.
“Like roads and bridges,” she says, “data infrastructure is foundational for answering fundamental questions about health and social policy.”
LIFE-M, which has been used by hundreds of social scientists, took a decade to set up and was seeded with National Science Foundation funding. Yet just as the project planned to expand its dataset from two states to nine with the help of a National Institute on Aging grant, that funding was frozen. Important research projects have been put on hold, Bailey notes, but it’s the state’s larger educational enterprise that is really in peril.
“The funding and expertise of our researchers spills over into a top-notch education for students, who go onto all types of professions. It’s one big package; research and teaching are deeply interrelated. Losing funds leads to losing the best faculty and best graduate students to other universities and countries, which is a huge loss for California’s public higher education.”
This post was originally published via https://www.ucla.edu/research.
—
Learn more about Martha Bailey’s visionary LIFE-M project at UCLA.
Participants in social safety net programs had higher rates of employment, were less reliant on public assistance

Citlalli Chávez-Nava
As federal social safety net programs face elimination or budgetary reductions under the new administration, a UCLA report has found some of the boldest War on Poverty programs launched in the 1960s and 1970s reduced poverty and improved upward mobility and well-being.
Launched in 1964 by President Lyndon Johnson’s administration, the War on Poverty represented one of the largest and most comprehensive attempts to improve well-being in United States history. The administration invested billions of dollars in education, health, employment and community development initiatives — including Head Start, an expanded food stamp program, family planning programs and community health centers. The campaign targeted the roots of poverty, seeking to provide a “hand up, not a handout.”
The study, recently published by the National Bureau of Economic Research, looks at how access to these programs for children in the 1960s and 1970s shaped the outcomes and living circumstances of tens of millions of adults today, using newly available large-scale data from the U.S. Census Bureau and the Social Security Administration. The decades-long research was led by Martha Bailey, professor of economics and director of the California Center for Population Research at UCLA.
Head Start, which aimed to reduce poverty and still serves 1 million children today, offers early education to preschool and kindergarten-aged children, nutritious meals and referrals to health and other social services. But for decades, evaluating the program’s success in helping children escape poverty was difficult since researchers faced data challenges in identifying valid comparison groups.
Using the newly available data, researchers measured Head Start’s success in terms of children’s later-life educational attainment, work in professional occupations, participation in the labor force and wage earnings. Researchers compared children who were born a few months too soon to enroll during Head Start’s initial rollout with children who did enroll. Head Start children were significantly more likely to finish high school and enroll in and finish college than peers who entered first grade without access to the program (Figure 1). The results also show that cohorts with access to Head Start experienced lower rates of adult poverty, had higher rates of employment and were less likely to have received public assistance.

“It’s important to consider the long-run consequences of public programs,” Bailey said. “Investing in children is like planting a seed. Many of the programs starting in the 1960s are still having measurable effects today.”
Based on analyses of hundreds of on-the-ground programs across the U.S., the report also found:

“The data show that U.S. poverty rates, health, human capital and employment outcomes would have been worse today without the substantial investments made under the War on Poverty,” Bailey said. “In many cases, the benefits of the programs well exceeded their costs.”
This story was originally published in UCLA’s Newsroom, here.
Shem-Tov’s research has reshaped key debates in criminal justice and labor economics

UCLA Social Sciences
Yotam Shem-Tov, assistant professor of economics at UCLA has been awarded a 2025 Sloan Research Fellowship, one the most competitive and prestigious awards available to early-career researchers which recognizes and rewards outstanding early-career faculty who have the potential to revolutionize the fields of economics, chemistry, computer science, Earth system science, mathematics, neuroscience and physics.
Shem-Tov studies labor economics, applied econometrics and criminal justice and crime. His research has reshaped key debates in criminal justice and labor economics by providing credible causal evidence that challenges long-held assumptions. One major contribution of his work has been his focus on restorative justice as an alternative to traditional prosecution.
While restorative justice has long been cited as a promising alternative to address conflict and crime, rigorous U.S.-based causal evidence has been scarce. Using data from a randomized controlled trial conducted by the San Francisco District Attorney’s Office, Shem-Tov provided some of the first robust estimates showing that restorative justice programs can reduce recidivism rates by 23 percentage points, offering valuable insights for policymakers seeking effective diversion strategies.
Another key contribution of Shem Tov’s work focuses on the long-term effects of incarceration on labor market outcomes. While conventional wisdom suggests that prison itself is a primary driver of unemployment and recidivism, his work reveals that many individuals already exhibit weak labor market attachment before incarceration—with employment rates below 50% and earnings below the federal poverty line. His findings suggest that the root causes of post-prison economic struggles often predate incarceration, shifting the policy focus toward early interventions, sentencing reforms and employment support programs for at-risk individuals.
Ultimately, his efforts aim to achieve a more effective and equitable system that balances public safety with rehabilitation. Shem Tov’s work has been published in leading economics journals such as: Econometrica, The Journal of Political Economy and The Review of Economics and Statistics.
Shem-Tom joins six other UCLA faculty among the 126 scientists and scholars to receive 2025 Sloan Research Fellowships, UCLA ranks No. 1 among public colleges and universities in the U.S. and Canada in the number of new honorees. Yotam also joins past Sloan winners in UCLA’s Department of Economics including David Baque, Natalie Bau, Denis Chetverikov, Pablo Fajgelbaum, Jon Vogel, Dora Costa, Lee Ohanian and Andy Atkeson.
Media Contact: cchaveznava@college.ucla.edu
Related Links:
Sloan Foundation | 2025 Sloan Foundation Research Fellowship Recipients
Sloan Foundation | 2025 Sloan Research Fellows Press Announcement
UCLA Newsroom | UCLA tops public universities in number of 2025 Sloan Research Fellows
UCLA Economics Department | Professor Yotam Shem-Tov Awarded 2025 Sloan Research Fellowship