Income inequality in California has reached one of the highest levels in the nation, with the wealthiest families earning significantly more than those at the bottom, according to the U.S. Census Bureau’s Current Population Survey (CPS) data for 2023.

Why It Matters

California’s cost of living is among the highest in the United States, driven significantly by elevated housing expenses. In 2017, the median home price in California was more than 2.5 times the national median, with coastal urban areas experiencing even higher prices.

As a result, less than a third of Californians can afford a median-priced home, and homelessness per capita is the third highest in the nation. This high cost of living, particularly in housing, exacerbates the state’s growing income gap. While the wealthiest residents continue to accumulate significant wealth, the state’s low- and middle-income families face increasing financial pressure.

What To Know

According to 2023 CPS data, California’s wealth divide has reached one of the highest levels in the nation. In 2023, the highest-earning families earned an average of $336,000, which is 11 times more than the lowest-earning families, who earned just $30,000.

Only Washington, D.C., and Louisiana reported wider income gaps.

Income disparity has grown significantly in California since 1980, when the top earners made seven times more than those at the bottom. Over the past four decades, the incomes of the highest earners have increased by 68 percent, while the incomes of the lowest earners have grown by 10 percent.

The divide is also widening between high- and middle-income earners, with top-income families now making three times more than the median income of $114,000, compared to twice as much in 1980.

California’s income gap is strongly linked to education levels, with families of college graduates earning significantly more than those without degrees.

Since 1980, median income has increased by 40 percent for families where at least one member holds a four-year degree, while it has declined by 9 percent for families without a college graduate. On average, families with a degree earn $2.36 for every $1 earned by families without one.

In recent years, however, the gap has narrowed slightly. Since 2016, median incomes for families without high school diplomas have grown by 17 percent, compared to 6 percent for those with college degrees. From 2020 to 2023, incomes for non-high school graduates rose 7 percent, while incomes for college graduates increased by just 2 percent.

Income disparities are also sharply divided along racial and ethnic lines. Black and Latino families, who make up 44 percent of California’s population, represent 55 percent of the lowest-income families but only 12 percent of the highest-income households. In contrast, white and Asian families make up 40 percent of the lowest earners but 83 percent of the highest-income households.

On average, for every $1 earned by white families, Asian families earn $0.94, Black families earn $0.63, and Latino families earn $0.52.

Increasing income inequality in California is occurring at the same time that the number of people in the state living below the poverty line is growing.

California’s poverty rate increased from 11.7 percent in 2021 to 13.2 percent in early 2023, with about 5 million residents living below the poverty line, according to the Public Policy Institute of California’s California Poverty Measure. Child poverty saw an even sharper rise, jumping from 9 percent to 13.8 percent in the same period. Despite this, poverty remains lower than pre-pandemic levels, when it stood at 16.4 percent in 2019.

Nonetheless, nearly one-third of Californians are now either poor or near poor, with 31.1 percent living close to the poverty line. Poverty rates are highest among Latinos (16.9 percent), seniors (15.2 percent), and foreign-born residents (17.6 percent), particularly undocumented immigrants (29.6 percent). Education also plays a key role: while only 6.4 percent of college graduates live in poverty, the rate is 22.3 percent for those without a high school diploma.

Most poor Californians are part of working families, with 76 percent living in households where at least one adult is employed. However, full-time workers face significantly lower poverty rates (5.3 percent) compared to part-time workers (18.5 percent).

What People Are Saying

Tess Thorman, research associate at the Public Policy Institute of California, told Newsweek: “When we compare trends in California to the rest of the country (so, not looking at individual states, but at all other states combined), inequality in California has really surged during recessions on a scale that it has not in the rest of the country.

“Overall, California’s long-term growth in inequality has been characterized by top incomes rising more quickly and consistently than low incomes. Top incomes have rebounded relatively quickly from recessions, while low incomes have seen larger declines and then taken longer to return to their pre-recession levels.

“A number of factors that are specific to California likely play into this variation, including the state’s high cost of living (including housing), a tech- and finance-heavy economy, and immigration patterns.”

What Happens Next

Data for 2024 has not yet been released. Thorman told Newsweek that it is “difficult to predict” if income inequality will continue to grow in California due to “technological advancements, international trade, and institutional changes.”

“These elements shape jobs and earnings, making future trends in inequality uncertain. Other factors like economic growth and education can also shape inequality and is hard to know what will be happening on those fronts,” Thorman added.

HUMBOLDT COUNTY, Calif. – The Yurok Tribe of Northern California say that, according to a pathology report, a California condor’s cause of death was lead poisoning. 

What we know:

In a social media post on Wednesday, the tribe said the 18-month-old condor, found in the wild in January, died after it apparently ate an air gun pellet. The bird was found in a remote backwoods area of Redwood National Park. 

The tribe said the condor, one of 18 free-flying condors released by the Northern California Condor Restoration Program over the last several years, was the youngest of the flock. 

The tribe’s collaboration with federal officials to reintroduce these birds is one of its flagship conservation projects. 

The bird was numbered B7, but its tribe-given name was Pey-noh-pey-o-wok, which means “I am friend or good kind natured.” The indigenous tribe considers these birds sacred. 

The examination of the bird revealed high concentrations of lead in its liver and bone. Officials delayed an announcement about the birds’ death until the official cause was determined. 

The source of the pellet is not known, officials said. 

Flying free 

“A natural death would have been less painful for us, the humans watching as he started to flourish in the wild,” Tiana Williams-Claussen, the tribe’s wildlife department director, said in the post.

She added that the condor was known for its friendliness and would be seen preening and huddling together with other condors and shared food easily. 

“He had only been flying free for a few months. That he was brought down by something human caused and preventable is devastating,” Williams Claussen added. 

The threat of lead 

Biologists say lead is the main threat to condors in the wild, making up half of the deaths of released condors when a cause of death is determined. The birds can die after scavenging on game that was shot and killed with lead ammunition when they ingest bullets. 

The NCCRP works to educate how the public can make a difference by switching to lead-free ammunition. 

The group is planning another group of condors into the wild later this year. 

The majority of the tribe is located in Humboldt and Del Norte counties.