Topic: Business & Public Policy
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Meet the faculty: Top-tier researchers join Berkeley Haas for 2024-25
Two top-tier researchers whose work addresses pressing environmental, development, and public policy questions have joined the ranks of Berkeley Haas professors this semester. Two additional professors will join the faculty in January 2025.
“Our new faculty hires this year are leading researchers and teachers who will help to solidify our emphasis on sustainability,” says Interim Dean Jenny Chatman. “We’re so thrilled they are bringing their brilliance to Haas—and to the greater UC Berkeley community.”
“Our new faculty hires this year are leading researchers and teachers who will help to solidify our emphasis on sustainability. We’re so thrilled they are bringing their brilliance to Haas—and to the greater UC Berkeley community.” —Interim Dean Jenny Chatman
Associate Professor Kelsey Jack, whose work lies at the intersection of environmental and development economics, comes to Haas from the University of California, Santa Barbara, where she was an associate professor at the Bren School of Environmental Science and Management and the Department of Economics.
Professor James Sallee is already a familiar face around campus. As a faculty member in the Department of Agricultural and Resource Economics at UC Berkeley since 2015 and a faculty affiliate at the Energy Institute at Haas since 2016, his research focuses on energy, the environment, climate, and public economics, with a focus on public policy.
In January, Berkeley Haas will welcome Economist Martin Beraja of MIT will join the Economic Analysis and Policy group as an assistant professor, and Dr. David Chan, a health economist and MD now at Stanford University, will join the Economic Analysis and Policy group as a professor. Chan will serve as the new faculty director for the Robinson Life Science, Business, and Entrepreneurship Program.
Associate Professor Kelsey Jack, Sheth Sustainable Business Chancellor’s Chair
Pronouns: she/her
Hometown: Van Zandt, Washington
Academic Group: Business and Public Policy
Education:
- PhD, Public Policy, Harvard University
- AB, Public and International Affairs, Princeton University
Research focus: Environmental and development economics
Introduction: I am joining Haas from the University of California, Santa Barbara, where I was an associate professor at the Bren School of Environmental Science and Management and the Department of Economics. Prior to that, I was an associate professor at Tufts University. I also spent a year at UC Berkeley in 2013-14 as visiting faculty in the Department of Agricultural and Resource Economics.
I study questions at the intersection of environmental and development economics. In particular, I try to understand how low income households use natural resources—land, water, energy—and the ways that policy can help align short-run economic needs with longer-run environmental and health concerns. I’ve thought about this topic for a long time, since a family trip to Madagascar after my freshman year in high school; it’s remained the problem that interests me most in the world. For example, at the moment, I’m studying climate adaptation in Niger and clean energy adoption in Ghana. I have other projects underway in India, South Africa, Malawi and Ivory Coast.
“I try to understand how low income households use natural resources—land, water, energy—and the ways that policy can help align short-run economic needs with longer-run environmental and health concerns. I’ve thought about this topic for a long time, since a family trip to Madagascar after my freshman year in high school.” —Associate Professor Kelsey Jack
Teaching: I am creating a new course, tentatively titled “Sustainable Markets: Profit, Policy, and Corporate Responsibility”
Why you decided to join Berkeley Haas: Amazing colleagues!
Fun (nonacademic) fact about you: I spent two years after college living in Vientiane, Lao People’s Democratic Republic (Laos) working for an environmental organization and figuring out what to do with my life.
Professor James Sallee
Pronouns: he/him
Hometown: Bloomington, Illinois
Academic Group: Economic Analysis and Policy
Education:
- PhD, Economics, University of Michigan
- BA, Economics and Political Science, Macalester College
Research focus: Energy, the environment, climate, and public economics, with a focus on public policy
Introduction: I always knew that I wanted to be an academic, to research, write and teach. So I went more or less straight through to my PhD after college. I fell in love with economics towards the end of college because I saw it as a versatile tool that could be used to study a variety of important problems. In graduate school, I was studying tax policy, partly because it interested me and partly because that was where I found the best mentorship. But, I fell almost by accident into a dissertation topic that studied tax subsidies for hybrid cars. As I learned more about environmental issues, I became more and more interested, and my career has ever since drifted more and more towards the biggest environmental problems of the day. I now study topics ranging from retail electricity pricing reforms in California to the design of public policies to ensure equity in the energy transition. For the last several years, I’ve worked with collaborators in the Rausser College of Natural Resources and at Haas to launch a brand new master’s program called the Master of Climate Solutions, which will be an interdisciplinary professional program that equips students to help become change agents for the climate across industries and sectors.
“As I learned more about environmental issues, I became more and more interested, and my career has ever since drifted more and more towards the biggest environmental problems of the day. I now study topics ranging from retail electricity pricing reforms in California to the design of public policies to ensure equity in the energy transition.” —Professor James Sallee
Class(es) you’ll teach: Core microeconomics
Why you decided to join Berkeley Haas: I have always loved professional education because it feels impactful to help equip students who are going to jump back into leadership roles right after school. I like the back-and-forth with students who bring not just intellectual curiosity, but also a wealth of experience to the classroom dialogue. I like that professional students demand that material is relevant and practical. I was also drawn to the opportunity to push Haas as the leader in climate and sustainability. My research and policy attention has moved more and more towards the climate challenge in recent years, and I believe that business can and must drive progress on climate.
Fun (non-academic) fact about you: I spent most of my money and all of my energy outside of work taking care of my three daughters. I love to travel and enjoy cooking.
Professional Faculty
In addition to the new members of the ladder faculty, nine new lecturers will be teaching courses this fall. Several others will join in spring (with additions exepected mid-year). They include:
- Helene York, Responsible Business
- Kate Gordon, Sustainable & Impact Finance
- Rebekah Butler, Business & Public Policy
- Alex Luce, Economic Analysis & Policy
- Ana Martinez, Economic Analysis & Policy
- Miyoko Schinner, Sustainable & Impact Finance
- Jules Maltz, Entrepreneurship & Innovation
- Richard Wuebker, Finance
- Asiff Hijiri, Finance/Entrepreneurship & Innovation
- queen jaks, Management of Organizations (spring 2025)
- Bianca Datta, Sustainable & Impact Finance (spring 2025)
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How removing politics sped up the post office
The Pendleton Act of 1883 shielded U.S. civil service workers from politics for the first time. A new study shows how this protection increased government efficiency and effectiveness.
A report on New York City’s post offices in the 19th century described the “incompetency, neglect, confusion, and drunkenness” of postal staff. Hundreds of bags of undelivered mail were scattered throughout one building, including a book addressed to the vice president of the United States.
It was a time of political patronage when civil service workers were offered jobs in exchange for partisan donations and allegiance. The passage of the Civil Service Reform Act in 1883—better known as the Pendleton Act—changed that by replacing discretionary appointments with rule-based hiring and abolishing mandatory political contributions.
New research by Berkeley Haas associate professor Guo Xu, with Abhay Aneja of Berkeley Law, demonstrates how these protections improved the quality and efficiency of the post office, particularly by dramatically reducing turnover.
“The introduction of civil service protections really works to limit political interference,” Xu says. “That in turn helps improve the quality of public good provision.”
While the research is historical, it offers lessons today as former President and presumptive Republican presidential nominee Donald Trump calls for rolling back civil service protections.
Fewer errors, faster delivery
The postal service expanded rapidly in the 19th century, serving as a central clearinghouse not only for personal communication but also economic transactions, with businesses advertising and completing transactions by mail. By the 1880s, postal workers constituted 34% of the entire federal workforce.
Xu and Aneja looked at personnel records of federal government workers to understand what kind of people were recruited and hired by the U.S. Post Office before and after reforms. They also gathered information about delivery errors from the postmaster general. Because the Pendleton Act was rolled out in two phases—large cities in 1883, smaller cities in 1893—the researchers could study before-and-after pictures at two different times.
Comparing places that were covered by the new rules to places that were not yet covered, they found two key outcomes. Cities where the Pendleton Act was rolled out experienced a 22% reduction in delivery errors. At the same time, mail carriers, on average, increased the volume of mail they carried by up to 14%, which implies a more efficient postal service.
“We looked into what happened as the U.S. government moved away from a traditional patronage system based on discretionary political appointments,” says Xu, an economist and economic historian. “Nowadays, most governments consider civil service protection as a necessary firewall between politics and administration, yet there has been surprisingly little research on whether this policy improves the conduct of everyday government business. Our study confirms civil service protections as a good governance tool.”
“Nowadays, most governments consider civil service protection as a necessary firewall between politics and administration, yet there has been surprisingly little research on whether this policy improves the conduct of everyday government business. Our study confirms civil service protections as a good governance tool.”
Reduced turnover increases performance
Xu and Aneja expected going into the project that any improvements they saw would likely result from hiring more qualified employees, since the Pendleton Act required civil service workers to take competitive entry exams. The personnel records, however, told a different story: employees looked similar before and after the reforms, but turnover dropped dramatically, particularly during election cycles.
“In every election year before 1883, a large number of postal employees were replaced by new appointees,” Xu says. “Once reforms rolled out, these political cycles essentially vanished.”
The researchers also examined how the Pendleton Act influenced local politics. They used newspapers, which were largely partisan in the 19th century, to measure the strength of local political parties. They found that in a given city, the Pendleton Act reduced the number of partisan papers and increased the number of politically independent newspapers. Though Xu acknowledges newspapers aren’t a perfect proxy for local party power, this finding points to an important double dividend from civil service protections: Separating politics from the administration of a rank-and-file bureaucracy not only improves performance but also helps weaken the stranglehold of local partisanship.
A lesson for modern politics
Today, political appointees make up less than 1% of federal service workers, but this ratio is not a given as the civil service has come under renewed political scrutiny. In October 2020, the Trump Administration issued an executive order to reduce civil service protections—commonly known as Schedule F. While this order was subsequently rescinded by the Biden Administration, the question of civil service protections is likely to re-emerge again. “We will pass critical reforms making every executive branch employee fireable by the president of the United States,” Trump said at a recent rally in South Carolina.
Efforts to roll back civil service protections raise two concerns. First, appointments to top positions are already fraught and lengthy processes; expanding the pool of political appointees could lead to even more delays and vacancies in the federal government.
Second, hiring political loyalists to conduct the day-to-day work of government appears to be bad business. Within the post office, at the very least, history suggests this would make services both costlier and less effective.
“Reforms to limit civil service protections are typically proposed with the idea that it’s hard for politicians to control an independent civil service, and that’s often true. But the flip side is that having no civil service protections risks creating a bureaucracy staffed with yes-men who are replaced each election cycle. That means the bottom line for overall performance has so far been theoretically unclear,” Xu says. “On this question, we can contribute a partial answer: Better protections have direct consequences for personnel dynamics and, more generally, the performance of government.”
Read the paper:
Strengthening State Capacity: Civil Service Reform and Public Sector Performance during the Gilded Age
By Guo Xu and Abhay Aneja
American Economic Review, forthcoming August 2024
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EWMBA students explore business in South Africa
One day last March, I gathered with my fellow EWMBA students inside of a 20-story building overlooking Johannesberg to learn about the world’s seventh largest coal mining company.
Our group also toured Nelson Mandela’s red-brick “matchbox” in the Soweto heat and spent time absorbing city politics, noshing on the local cuisine and markets, and visiting small businesses—all part of the Seminar in International Business (SIB) in South Africa, an annual Berkeley Haas Evening & Weekend MBA Program course.
SIB South Africa builds upon the relationships of professors Mark Rittenburg and Ingrid Gavshon, who have deep connections to South Africa through decades of work around coaching, communication, and media in the country, and Lecturer Janine Lee, EWMBA 14, who previously attended the trip as a student, the SIB faculty team built a curriculum to push students to become more global-aware leaders and communicators.
While labeled as a business class, business was one many windows we were able to peer into while visiting South Africa.
Part of our class pre-assignment focused on South Africa’s history and politics. We discussed Nelson Mandela’s rise, the years of apartheid, the country’s democratic transition, and its current economy. Learning about its history reminded me that apartheid was not a relic of a forgotten past but indelible in the townships we drove past and part of what drives South Africa’s entrepreneurs toward change.
Through the network of our professors, we had a unique week, highlighted by the hospitality of their friends and professional colleagues in intimate settings that helped us better understand companies. We visited ABSA, a banking conglomerate based in Johannesburg, and SASOL, one of Africa’s major energy companies, where we had a chance to speak to some of the senior leaders.
Outside of traditional corporations, we also visited multiple non-profits in South Africa, including iHub, Harambee, and Rise Above Development, learning about the aspirations of South African youth. A highlight was a chance to collaborate on a crisis management role-play exercise with the students at iHub, giving them a glimpse of how things could work in their future careers. Between rounds of Nando’s chicken, a South African classic, we continued many conversations as part of an informal meet and greet, discussing careers, skill development, and passions. It was a lesson in hope, shared humanity, and, once again, perspectives you often won’t find in a standard business school class.
Our most unique visit was with the deputy mayor of Cape Town, Alderman Eddie Andrews. A city the size of Boston that prides itself as one of the most beautiful places in the world, we got an inner glimpse into the workings of Cape Town. A former rugby player turned politician, Andrews was kind, patient, and enthusiastically answered more than an hour of questions, touching on everything from structure, sustainability, funding, national politics, and more. His mission to set an example of good governance for South Africa inspired us.
Layering on the many ways we interacted with different sectors of the South African economy, the class also allowed us to experience South Africa as tourists, from the grasslands of Kruger National Park to the iconic mountains of Coastal Cape Town. We took solemn tours of Mandela’s prison on Robben Island and the Apartheid Museum, where we spoke to Mandela’s former jailer. They all contributed to our growing connection and understanding of the country.
It’s hard to talk about SIB without mentioning the people. As with any other Haas class, having diverse experiences added dimension. As EWMBA students, we all come from different backgrounds with different motivations for the trip. Our industries span from technology, healthcare, real estate, and education to jobs in sustainability, sales, and clinical research. This spectrum was foundational to our visits, yielding new questions at every site that drew upon students’ unique curiosities.
We went on excursions and dined together, shared jokes while passing snacks on our bus, and spent time reflecting on the week’s fun, stimulating, and complex experiences. Our celebration dinner included emotional toasts, superlatives, and Polaroid memories. As part of the course, our faculty team prompted us to write a letter about our dreams and aspirations for the trip, which encouraged shared vulnerability that pushed many of us to the edge of our comfort zones.
Toward the end of our trip, many of us agreed that SIB had shifted from a class and transcended into something more abstract—an experience, a journey, an academic version of catharsis.
Reflecting upon the best parts of SIB, I was reminded of one of the Berkeley Haas core Defining Leadership Principles: Beyond Yourself. In South Africa, we were forced to challenge our privilege consistently. There was nuance in everything there, from starting and investing in a company to advising young people who come from very different upbringings. In all of this, we saw ways to better ourselves, better our perspectives, and grow an inch closer to the ethos of leadership we saw as a symbol of Haas.
For many of us, it was our first time visiting South Africa. Thanks to this experience with Haas, it may not be our last.
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“Classified” is an occasional series spotlighting some of the more powerful lessons being taught in classrooms around Haas.
On a recent Monday afternoon, Sohan Dhanesh, BS 24, joined a team of students to consider whether startup Moneytree is using machine learning ethically to determine credit worthiness among its customers.
After reading the case, Dhanesh, one of 54 undergraduates enrolled in a new Berkeley Haas course called Responsible AI Innovation & Management, said he was concerned by Moneytree’s unlimited access to users’ phone data, and whether customers even know what data the company is tapping to inform its credit scoring algorithm. Accountability is also an issue, since Silicon Valley-based Moneytree’s customers live in India and Africa, he said.
“Credit is a huge thing, and whether it’s given to a person or not has a huge impact on their life,” Dhanesh said. “If this credit card [algorithm] is biased against me, it will affect my quality of life.”
Dhanesh, who came into the class believing that he didn’t support guardrails for AI companies, says he’s surprised by how his opinions have changed about regulation. That he isn’t playing Devil’s advocate, he said, is due to the eye-opening data, cases, and readings provided by Lecturer Genevieve Smith.
A contentious debate
Smith, who is also the founding co-director of the Responsible & Equitable AI Initiative at the Berkeley AI Research Lab and former associate director of the Berkeley Haas Center for Equity, Gender, & Leadership, created the course with an aim to teach students both sides of the AI debate.
Her goal is to train aspiring leaders to think critically about artificial intelligence and implement strategies for responsible AI innovation and management. “While AI can carry immense opportunities, it also poses immense risks to both society and business linked to pervasive issues of bias and discrimination, data privacy violations, and more,” Smith said. “Given the current state of the AI landscape and its expected global growth, profit potential, and impact, it is imperative that aspiring business leaders understand responsible AI innovation and management.”
“While AI can carry immense opportunities, it also poses immense risks to both society and business linked to pervasive issues of bias and discrimination, data privacy violations, and more,” – Genevieve Smith.
During the semester, Smith covers the business and economic potential of AI to boost productivity and efficiency. But she also explores the immense potential for harm, such as the risk of embedding inequality or infringing on human rights; amplifying misinformation and a lack of transparency, and impacting the future of work and climate.
Smith said she expects all of her students will interact with AI as they launch careers, particularly in entrepreneurship and tech. To that end, the class prepares them to articulate what “responsible AI” means and understand and define ethical AI principles, design, and management approaches.
Learning through mini-cases
Today, Smith kicked off class with a review of the day’s AI headlines, showing an interview with OpenAI’s CTO Mira Murati, who was asked where the company gets its training data for Sora, OpenAI’s new generative AI model that creates realistic video using text. Murati contended that the company used publicly available data to train Sora but didn’t provide any details in the interview. Smith asks the students what they thought about her answer, noting the “huge issue” with a lack of transparency on training data, as well as copyright and consent implications.
After, Smith introduced the topic of “AI for good” before the students split into groups to act as responsible AI advisors to three startups, described in three mini cases for Moneytree, HealthNow, and MyWeather. They worked to answer Smith’s questions: “What concerns do you have? What questions would you ask? And what recommendations might you provide?” The teams explored these questions across five core responsible AI principles, including privacy, fairness, and accountability.
Julianna De Paula, BS 24, whose team was assigned to read about Moneytree, asked if the company had adequately addressed the potential for bias when approving customers for credit (about 60% of loans in East Africa go to men, and 70% of loans in India go to men, the case noted), and whether the app’s users are giving clear consent for their data when they download it.
Other student teams considered HealthNow, a chatbot that provides health care guidance, but with better performance for men and English speakers; and MyWeather, an app developed for livestock herders by a telecommunications firm in Nairobi, Kenya, that uses weather data from a real-time weather information service provider.
The class found problems with both startups, pointing out the potential for a chatbot to misdiagnose conditions (“Can a doctor be called as a backup?” one student asked), and the possibility that MyWeather’s dependence on a partner vendor could lead to inaccurate climate data.
Preparing future leaders
Throughout the semester, students will go on to develop a responsible AI strategy for a real or fictitious company. They are also encouraged to work with ChatGPT and other generative AI language tools. (One assignment asked them to critique ChatGPT’s own response to a question of bias in generative AI.) Students also get a window into real-world AI use and experiences through guest speakers from Google, Mozilla, Partnership on AI, the U.S. Agency for International Development (USAID), and others.
All of the students participate in at least one debate, taking sides on topics that include whether university students should be able to use ChatGPT or other generative AI language tools for school; if the OpenAI board of directors was right to fire Sam Altman; and if government regulation of AI technologies stifles innovation and should be limited.
Smith, who has done her share of research into gender and AI, also recommended many readings for the class, including “Data Feminism” by MIT Associate Professor Catherine D’Ignazio and Emory University Professor Lauren Klein; “Unmasking AI: My Mission to Protect What Is Human in a World of Machines” by AI researcher, artist, and advocate Joy Buolamwini; “Weapons of Math Destruction” by algorithmic auditor Cathy O’Neil; and “Your Face Belongs to Us” by New York Times reporter Kashmir Hill.
Smith said she hopes that her course will enable future business leaders to be more responsible stewards and managers of such technologies. “Many people think that making sure AI is ‘responsible’ is a technology task that should be left to data scientists and engineers,” she said. “The reality is, business managers and leaders have a critical role to play as they inform the priorities and values that are embedded into how AI technology is developed and used.”
Berkeley City Council Candidate James Chang, MBA 24, talks People’s Park, campus safety
James Chang, Chief of Staff for Berkeley City Councilmember Ben Bartlett, thought he’d return to a private sector job after graduating from the Berkeley Haas Evening & Weekend MBA Program this spring.
Turns out that’s not happening just yet.
Chang said his experiences in the MBA program inspired him to double down on his leadership skills and remain in the public sector, running for the open District 7 City Council seat in the April 16 special election. District 7 stretches from the UC Berkeley campus to five blocks south. Chang is running against UC Berkeley senior Cecilia Lunaparra.
Haas News recently talked to Chang, who also holds a bachelor’s degree in political economy from UC Berkeley, about his love of public service, his experiences at Haas, and his desire to serve Berkeley in a district where students make up the majority of the voting population.
You came to Haas planning to return to the private sector. Why did you change your mind and run for office instead?
I wanted to leave politics. But coming here renewed my passion for public service. I was a delegate in the Graduate Assembly, representing all three Haas MBA programs, and president of the EWMBAA (student) association. That is what made me realize that I want to really double down on public service.
As you approach graduation, what are some highlights from your time spent in the MBA program?
Taking core classes with my cohort and the deep friendships that you build. Also, placing second at the HUD Innovation in Affordable Housing Student Design and Planning Competition. Being able to work with different people from the Real Estate development program, Berkeley Law, and the architecture program at Berkeley… If there’s anything I could recommend that Haasies do, it is case competitions with people from outside of your program. Meeting people from different majors and different walks of life is a beautiful thing.
What made you decide to run for a seat on the City Council?
I’m running because I have a deep passion for public service and because I have a deep love for Berkeley. Berkeley is a place where I found the love of my life, Richard. But it goes a little deeper than that. I get to be authentically “me” here, whether that’s showing up at work at City Hall, or showing up authentically at Haas—being a leader on campus representing Haas, I have the opportunity to be who I am: fearless, not just in my identity, but also in my values and being able to speak up, even if it’s sometimes unpopular.
What are the core issues driving your campaign?
Fighting for affordable housing. I am concerned about housing affordability and availability and safety, which I know is a big concern for many of our students. Students deserve a nice place to live and an economically vibrant Telegraph Avenue business district. These are all things that I’m running on. The person who represents you—the job is to really serve you and bring back resources to the community, to make the community better, and I think I’ve shown I’ve been able to do that.
Do you support the UC Berkeley campus decision to build housing at People’s Park?
Yes. I think this is one of the reasons why Haasies should care about this election. The building project at People’s Park, to be clear, includes two-thirds green space. There’ll be housing for 1,100 students, and there will be over 100 housing units for the unhoused. We can either have that as an option, or an open-air drug market as the alternative. I know students overwhelmingly want housing. I think a lot of students are too afraid to speak up because, anytime we do anything to solve a problem that requires some form of public safety measure, it’s often vilified as a right-wing tactic or supporting right-wing policies. And I just really reject those notions.
We can either have that as an option, or an open-air drug market as the alternative. I know students overwhelmingly want housing.
How do you think your classes and community at Haas have helped you to be a better leader?
I think that all of my classes are founded on our Haas Defining Leadership Principles. Whether that’s going beyond ourselves, questioning the status quo, confidence without attitude, or students always, every single one of my classes has really grounded me. I have become a better leader, am open to different perspectives, ask the tough questions, and also just always want to learn and soak up different knowledge. I always say Haas is one of the most supportive communities that I’ve ever belonged in.
What do you love about your current job?
What I do best is I know how to deliver for constituents who are in need, as long as they’re patient with me and give me time. Most of the time, I am able to give them what they want within reason, whether that’s cleaning up a street, making sure that our unhoused people are compassionately served, or getting a traffic circle at the edge of our district, or making sure that their events get fully funded. Also, getting $9 million for the African American Holistic Research Center, and making MLK Way much safer. It’s still messy, but safe. That took seven years, and I am so proud of it.
How would you make this area of Berkeley safer?
I think we need better lighting on and off campus. The campus “Warn Me” system needs to be a lot better. The city could do more to make sure that simple things like cracked shop windows are fixed, simple things like cleaner streets—this goes a long way. We are also working with merchants to install private cameras that work with the city. I am open to public cameras but I am always concerned with civil liberties, so I’m not ready to say yes or no to that. We should be working with business first. One of my biggest goals is economic growth on Telegraph. We know the No. 1 crime deterrent is more eyes on the streets, so that’s what I’m really hoping for.
The special election will be held April 16 until 8 p.m. (mail-in ballots have been sent). Registration has ended, but eligible District 7 voters can register at the voting location, the YWCA Berkeley, 2600 Bancroft Way, Berkeley, before and on election day.