What if employees aren’t just costs—but outcomes? New research from Professor Robert Eberhart reveals how community shapes hiring decisions—and why firms that value employment may actually perform better.

What if the customer journey is not a path, but chaos? New research from Professor Justine Rapp Farrell reveals how consumers navigate uncertainty—and what businesses must do differently.

In a June 2023 speech, first lady Jill Biden, who teaches at Northern Virginia Community College, called community colleges “the best-kept secret in America.” She cited stories of two-year students who were making starting salaries of $25 an hour and $50,000 a year. Those students are among the 10.2 million enrolled at community colleges, according to the American Association of Community Colleges. They account for 41% of all undergraduates, according to the Community College Research Center. But if community colleges are heavyweights in higher education enrollment, they’re lightweights in higher education finance. They take in $13,780 in revenue per student, compared to $30,890 for public universities with doctoral programs, according to the College Board. That imbalance between responsibilities and resources concerns Adriana Vamosiu, PhD, department chair of economics at the University of San Diego's Knauss School of Business. “Community colleges get the least funding,” she says. “They can’t do enrollment management, they don’t have much ability to set tuition levels and they have to figure out how to do their best with it all. ” In the 2022 paper “ Neighbor‑Effects and Economies of Scale and Scope at Public Community Colleges ” — co-authored with Knauss professor of economics Jon Sandy and Marvin Titus of the University of Maryland — Vamosiu offers lessons on how community colleges can use their resources more efficiently and how they can argue for more. Key Insights Community colleges struggle with funding disparities despite enrolling a significant portion of undergraduates, hindering their operational flexibility and resource allocation Research findings highlight the 'Neighbor Effect,' where increased faculty hiring at one community college raises costs for others, along with cost differences between offering degrees and certificates Strategic partnerships with local entities alleviate cost inefficiencies, aiding community colleges in providing diverse educational offerings while addressing regional needs for job training

Economists have yet to solve the puzzle of stock market participation. What is it that motivates a person to invest? And why do some people with the means to invest decide not to? What economists know for certain is that racial disparities continue to exist in stock market participation in the United States.  According to the Federal Reserve Board’s Survey of Consumer Finances, just 34% of Black American households owned equity investments in 2019 compared to 61% of white households. Black families also invested less in equity on average — $14,400 for the typical Black household compared to $50,600 for the typical white household. This gap persists among households with above-median net worth. This sharp divide in stock market participation makes identifying the motivations behind investment decisions all the more pressing, and bridging this divide could help to close the larger racial wealth gap. The subject of wealth inequality is of particular interest to Melina Vosse, PhD, assistant professor of finance at the University of San Diego Knauss School of Business. Vosse’s research focuses on the impact of social dynamics on financial outcomes, and, most recently, the influence of diverse social networks on financial decision-making. Key Insights Racial disparities persist in stock market participation, with lower rates and investment amounts for Black households compared to white households, indicating a pressing need to understand the motivations behind investment decisions. Integration benefits both Black and white households in improving financial outcomes, debunking the notion that only marginalized groups benefit from integration, and highlighting the importance of diverse perspectives in shaping financial awareness and decision-making. Residential integration positively impacts stock market participation, with more diverse communities showing increased likelihood of investing in public equity markets and reaping higher returns, emphasizing the role of social connections in financial decision-making.

Hunger in childhood is especially devastating as it can lead to malnutrition, stunted growth and development, and even death. In sub-Saharan Africa today, 57 million children under the age of 5 suffer stunting due to severe malnutrition, according to the United Nations. And malnutrition contributes to about 45% of deaths in children under the age of 5 worldwide, according to the World Health Organization. While progress has been made in some regions, childhood hunger remains a major global concern, driven in large part by extreme poverty, conflict and climate change. In 2015, all 193 U.N. member states adopted 17 goals known as the Sustainable Development Goals (SDGs) in “a universal call to action to end poverty, protect the planet, and improve the lives and prospects of everyone, everywhere” by 2030. Key SDGs include improving nutrition and reducing child mortality, with vulnerable populations in sub-Saharan Africa and South Asia being prime targets for action. Success in achieving these goals will require a collaborative effort by the international community, including national and local governments, donors, nongovernmental organizations (NGOs), industries, nutritionists, and economists. One collaboration between nutritionists and economists is the subject of the 2023 paper “ Impacts of Micronutrient Intervention Programs on Effective Coverage and Lives Saved: Modeled Evidence From Cameroon ,” published in Annals of the New York Academy of Sciences. Karen Ortiz-Becerra, PhD, an assistant professor of economics at the University of San Diego Knauss School of Business, is among the researchers who modeled the effectiveness, costs, and cost-effectiveness of alternative micronutrient intervention programs (MIPs) for improving nutritional adequacy among children under the age of five and women of reproductive age and reducing child mortality in Cameroon. Using this data on MIP effectiveness and costs, the study applied an economic optimization model to identify the most cost-effective MIPs for two different policy objectives over a 10-year horizon: improving dietary adequacy of critical micronutrients and saving children’s lives. “There are several MIPs that can improve dietary adequacy and save child lives to various degrees. We wanted to identify those that are most cost-effective since resources are limited,” Ortiz-Becerra says. Key Insights Because money is tight and needs are great, modeling-informed micronutrient intervention programs (MIPs) prioritization is critical for policymakers working in Cameroon and other low- and middle-income countries to improve nutritional adequacy and reduce child mortality The MIPs currently underway in Cameroon were found by researchers to be largely cost-effective in achieving dietary adequacy of critical micronutrients However, in order to have a larger impact on reducing child mortality, researchers found it would be more cost-effective to shift some resources away from vitamin A supplementation to provide more zinc to young children and more folic acid to women of reproductive age

Over the last decade, the so-called sharing economy has made a major splash in the global market — and its ripple effects are set to grow wider. In 2022, the global sharing economy market size was valued at almost $150 billion, and it is expected to expand at a compound annual growth rate of 32.01% over the next five years, according to Absolute Reports. That means, by 2028, the sharing economy market size could reach an astounding $793.68 billion.  The sharing economy market size growth doesn’t come without controversy though. Risks include regulatory uncertainty, privacy and safety concerns, and unfair management practices. One major sharing economy player, Uber, has faced massive lawsuits for numerous types of wrongdoing, including Americans with Disabilities Act violations, employee misclassification and negligent hiring practices.  However, many aspects of the sharing economy have proven beneficial to consumers and to other businesses. The Airbnb sharing economy, for example, has been shown to have positive effects on local businesses, according to new research co-authored by Yongseok Kim, PhD, an assistant professor of marketing at the University of San Diego Knauss School of Business. Key Insights Airbnb significantly boosts restaurant revenue, contributing to about 12% of the restaurants' median annual revenue growth. This effect is driven by the increased non-local demand for restaurants, due to Airbnb. This effect is larger for independent restaurants and in less commercial areas in the city, which need the benefit the most. Benefits of the Airbnb Sharing Economy on Restaurants in Texas Kim and his fellow researchers became interested in studying the impacts of the Airbnb sharing economy as demand for the platform grew exponentially between 2008 and 2018. To explore the relationship between Airbnb rentals and local economies empirically, he focused specifically on restaurants in Texas, using a difference in difference strategy to compare Texas state government revenue data to Airbnb review data by manually scraping consumer-facing information from the company’s website. The final data set included about 900,000 reviews of 99,805 properties listed by 61,210 distinct hosts. “There was so much talk about the negative impacts of Airbnb, I wanted to explore if there were positives,” explains Kim. “When we look at the geographical distribution of Airbnb compared to hotels, they’re everywhere. And that style of accommodation attracts tourism demand to areas that were historically isolated from tourism, which creates interesting results.” Kim’s research found that, in the state of Texas, a 1% increase in the number of Airbnb reviews in a zip code is associated with a 0.011% increase in restaurant revenue in the same zip code. According to the paper, “this result implies that Airbnb can explain about 12% of the median annual restaurant revenue growth.” Put simply, the data reveals that, for every $100 worth of restaurant revenue growth, $12 can be attributed to a rise in the number of Airbnb stays in the local area. This information is especially pertinent in less commercialized areas that have been traditionally cut off from tourism. Hotels aren’t built in these areas because they can’t fill enough rooms, but, with Airbnb rentals, just one housing unit needs to be filled at a time. And that leads to tourists visiting areas that were previously inaccessible. For local restaurants, this uptick in tourism can lead to revenue growth. It can also create unique opportunities to maximize the benefits of Airbnb rentals in their area. Comarketing: Restaurants and Airbnb Owners Comarketing is a strategy in which two or more companies collaborate on promotional efforts to mutually boost their brands’ visibility, reach larger audiences and share their resources. In the unique context of the Airbnb sharing economy, this can be done by restaurant owners and Airbnb owners. Comarketing for Airbnb units and restaurants can take many forms. It could mean listing local restaurants in the online Airbnb description, providing an in-home neighborhood guide that includes restaurants or even partnering to offer a discount to Airbnb guests at restaurants. These strategies are mutually beneficial because restaurant owners stand to gain more business while Airbnb owners are able to showcase the character of the local area, which could lead to increased bookings. “What’s interesting is that we see a greater impact on local restaurants, not chains,” says Kim. “So, in more residential areas, Airbnb could be a good thing for small businesses.” According to the research paper, “home-sharing platforms can increase economic activity for businesses and in neighborhoods that are more likely to need it the most.” The paper demonstrates the benefits of Airbnb rentals to the local economy — but Kim warns that this isn’t the only factor that should be considered. Objections to Airbnbs In residential and rural environments, the Airbnb sharing economy is associated with positive economic impacts. However, increased tourism isn’t always welcome. For example, unruly large groups can disrupt the peace in an otherwise quiet neighborhood. Additionally, analysis conducted by the Economic Policy Institute suggests that an expansion in the number of available Airbnb units in an area is similar to gentrification in that it can slowly increase the property values in the area to the detriment of long-term residents, who can be pushed out due to financial constraints. But this is typically relegated to major cities — not residential areas. Kim suggests that local officials weigh the benefits of Airbnb rentals, such as local business revenue growth, against potential drawbacks. “It’s not a one-size-fits-all,” he says. “There are lots of important factors to consider, and economic growth is one of them.” Ongoing Research: The Influence of the Airbnb Sharing Economy Is Felt Beyond Restaurants While Kim’s research demonstrates a positive association between Airbnb reviews and local restaurant revenue, ongoing research suggests that the economic impact likely goes beyond the food and beverage industry. Other local businesses such as clothing stores, entertainment venues, grocery stores and gift shops are likely to reap similarly positive benefits from Airbnb units becoming available in their communities. Tourists usually spend money in the places where they stay, whether that’s on eating out, going to a show or buying a souvenir. For local businesses that would ordinarily not have access to tourism revenue, this could mean a welcome bump in business. Study What Excites You at the University of San Diego The University of San Diego Knauss School of Business is closely studying previously unknown ways for local economies and businesses to take advantage of new opportunities. Professor Yongseok Kim and his fellow faculty members are uncovering innovative ways to help small businesses thrive, and they’re committed to passing those insights on to their students. Visit the Knauss School of Business to explore degree offerings, get acquainted with the University of San Diego student experience and see how you can study what excites you.  Recommended Readings Auditor-Client Communications: Industry Implications for Engagements  Finding Opportunity in Crisis: Developing Strategies for Managing Climate Risk  How Underlying Consumer Values Can Support New Strategies for Nonprofit Organizations Sources: Forbes, “The Airbnb Effect on Housing and Rent” Yahoo Finance, “Sharing Economy Market Size 2023, Share │ Growing Report [2028]” Yongseok Kim is an assistant professor of marketing at the University of San Diego's Knauss School of Business. In his research, Dr. Kim focuses on the empirical analysis of a variety of societal, economic, and technological changes and measures their impact on business.

As California goes, so goes the nation, according to the adage about American culture. It’s true not just in music and fashion, but for animal welfare regulations as well.

Millions of dollars in federal funds were overallocated to investment advisory firms that misrepresented company information on their pandemic relief loan applications. That’s according to a recent study co-authored by William Beggs, assistant professor of finance at the University of San Diego’s Knauss School of Business.