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Income Inequality and Economic Opportunity in California

The COVID-19 recession threatens to worsen California’s longstanding economic divide. Low-income families, communities of color, and women have been hit the hardest, and past recessions suggest their wages will take longer to recover. Can policymakers break the mold and pave the way for an equitable recovery?

blog post

Is College the Answer to Income Inequality?

By Hans Johnson, Marisol Cuellar Mejia

Educational attainment is by far the single most important determinant of an individual’s income. A key question, then, is whether improvements in educational outcomes can reduce inequality.

Report

California’s Rising Income Inequality: Causes and Concerns

By Deborah Reed

Income inequality has risen sharply in California over the past two decades, increasing faster in the state than in the nation as a whole.  The growing gap between rich and poor  in California results not only from rising incomes among the well-off but also from a precipitous drop in income among those in the mid-to-lowest levels of the income distribution.  This study examines a number of possible explanations for the growing divergence in earnings among male workers in California.  The study finds that immigration and rising returns to skill account for more of the widening gap than any of the other possibilities considered.

blog post

Will This Recession Deepen California’s Economic Divide?

By Sarah Bohn, Dean Bonner, Vicki Hsieh, Julien Lafortune

The current downturn is having a disproportionate impact on low-income Californians and communities of color. Deliberate policy action can help create an equitable recovery and broaden long-term economic opportunity.

blog post

California’s Housing Divide

By Marisol Cuellar Mejia, Hans Johnson, Julien Lafortune

African Americans and Latinos have been especially affected by the state’s housing affordability crisis, and the pandemic’s disproportionate impact on households of color threatens to widen disparities in homeownership.

Explainer

Making Sense of California’s Economy

By Sarah Bohn, Marisol Cuellar Mejia, Julien Lafortune, Vicki Hsieh

We take a look at where California's economy has been, where it might be headed, and how we can better insulate Californians against future upheavals.

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