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The Impact of Health Insurance on Poverty in California

By Caroline Danielson, Patricia Malagon, Shannon McConville

The Affordable Care Act has helped millions of Californians gain health insurance over the past decade. In addition to improving access to care, the ACA has increased financial well-being. This analysis focuses on the significant contribution of publicly funded health coverage—particularly Medi-Cal—to family resources across the state.

Fact Sheet

Income Inequality in California

By Tess Thorman, Daniel Payares-Montoya

California’s income gap narrowed in 2022, but the disparity between high and low incomes is wider in California than in most other states. Over the longer term, income inequality has been driven by earnings growth among college-educated workers.

Report

California’s Safety Net in Recession and Recovery

By Caroline Danielson

As California emerges from the COVID-19 shutdown, the social safety net can play a key role in facilitating an equitable recovery. Evidence from the last recession and recovery shows that safety net programs do grow in response to increased need. But the state can take additional steps to deliver benefits more effectively and equitably.

Report

Child Poverty and the Social Safety Net in California

By Caroline Danielson, Sarah Bohn

Because economic hardship is associated with a host of adverse outcomes, particularly for children, policies that can give children a better start in life are especially important. This report focuses on measuring material hardship among children across the state. Using the California Poverty Measure—which accounts for both family earnings and safety net resources and adjusts for work expenses and housing costs—we find that one-quarter of California’s children are in poverty. An additional 26 percent of children live in households that are "near poor,” or somewhat above what is often referred to as the poverty line. In short, about half of California’s children are poor or near-poor. Poverty rates, earnings, and the role of safety net resources all vary by region. But most poor children live in "working poor” families, with one or more working adults. And, without resources from the social safety net—which includes the federal Earned Income Tax Credit, CalFresh (California’s food stamp program), CalWORKs (California’s welfare program), and housing subsidies—there would be far more children in poverty throughout California.

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