Just the FACTS

Poverty in California

  • Despite strong economic growth, the official poverty rate remains high.
    According to official poverty statistics, 16.4% of Californians lacked enough resources—about $24,000 per year for a family of four—to meet basic needs in 2014. The rate has declined a little from 16.8% in 2013, but it is well above the recent low of 12.4% reached in 2007. Moreover, the official poverty line does not account for California’s housing costs—or other key family needs and resources.
  • When family resources and needs are more fully accounted for, poverty in California is even higher.
    The California Poverty Measure (CPM), a joint research effort by PPIC and the Stanford Center on Poverty and Inequality, is a more comprehensive approach to gauging poverty in California. It accounts for the cost of living and a range of family resources—including social safety net benefits—and needs. We find that in 2013, 21.0% of Californians were living in poverty—a slightly smaller share than in 2011 and 2012. Poverty was highest among children (23.9%) and lower among older adults (19.1%) and adults age 18–64 (20.3%).
  • Overall, about 4 in 10 California residents are living in or near poverty.
    About one in five (19.8%) Californians were not in poverty but lived fairly close to the poverty line. All told, 40.8% of state residents were poor or near poor in 2013. But the share of Californians in families with less than half the resources needed to meet basic needs was 5.9%, a deep poverty rate that is smaller than official poverty statistics indicate.
  • Without social safety net programs, more Californians would live in poverty.
    The largest social safety net and low-income tax programs—CalFresh (California’s food stamp program), CalWORKs (cash assistance for families with children), the federal Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), Supplemental Security Income (SSI/SSP), federal housing subsidies, the Supplemental Nutrition Program for Women, Infants, and Children (WIC), and free or low-cost school meals—together kept an estimated 8.4% of Californians out of poverty in 2013. CalFresh lowered the poverty rate most, by 2.4 percentage points, followed by the EITC (2.3 percentage points). CalWORKs, SSI/SSP, CTC, and housing subsidies each lowered the rate 1.1 to 1.3 points. These differing effects reflect program scale and scope, as well as participation rates among eligible families. In some cases, program effects are not additive but overlapping.
  • Poverty is high but would be even higher without the social safety net

    Figure 2

    SOURCE: Estimates from the 2013 California Poverty Measure.

    NOTE: "No safety net” bars show the estimated increment to the poverty rate if resources from safety net programs are not counted. Northern counties: Butte, Colusa, Del Norte, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Plumas, Shasta, Sierra, Siskiyou, Tehama, and Trinity. Sacramento area counties: El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba Counties. Bay Area counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma. Central Sierra counties: Alpine, Amador, Calaveras, Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Mono, San Joaquin, Stanislaus, Tulare, and Tuolumne. Central Coast counties: Monterey, San Benito, San Luis Obispo, Santa Barbara, and Ventura Counties. Inland Empire counties: Imperial, Riverside, and San Bernardino.

  • Poverty rates and the effect of safety net programs vary by county and region.
    From 2011 to 2013, Los Angeles County had the highest poverty rate in California: 25.7% of the county’s residents were poor. Rates in Santa Barbara (24.1%) and Monterey/San Benito Counties (combined, 24.0%), were also among the highest. Placer and El Dorado Counties had the lowest rates at 13.3% and 14.0%, respectively. In 2013, safety net programs cut poverty 14.3 percentage points in the Central Valley and Sierra region, but just 5.0 percentage points in the Bay Area and in Orange County.
  • Poverty rates vary widely across California’s counties

    Figure 2

    SOURCE: Estimates from the 2011–2013 CPM combined.

    NOTE: For some counties, poverty rates cannot be calculated individually. Those counties are grouped. All estimates are subject to uncertainty due to sampling variability. The uncertainty is greater for less populous counties and county groups (because of smaller survey sample sizes). For more information, see our data page.

  • Minorities and less-educated Californians have higher poverty rates.
    Latinos (29.6%) and African Americans (21.7%) had much higher poverty rates than whites (14.1%) in 2013. Asians (17.2%) fell in between. More education is generally associated with lower poverty rates: the rate for adults age 25–64 with college degrees was 8.5%, compared with 38.2% for those without high school diplomas.
  • Most poor families in California are working.
    In 2013, 78% of poor Californians lived in families with at least one adult working, excluding families made up only of adults age 65 and older. For 53.8% of those in poverty, at least one family member reported working full time. For another 24.2%, at least one adult was working part time.

Sources: All estimates are based on the California Poverty Measure (CPM) unless otherwise noted. Official poverty statistics are based on the American Community Survey. For more about the CPM see Bohn et al., The California Poverty Measure (PPIC, 2013) and Wimer, Mattingly, Kimberlin, Danielson, and Bohn, California Poverty Measure.

Authors

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Sarah Bohn
Research Fellow
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Caroline Danielson
Senior Fellow
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Monica Bandy
Research Associate