Poverty, the Safety Net, and Building a More Inclusive Economy

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Presentation transcript:

Poverty, the Safety Net, and Building a More Inclusive Economy November 2, 2018 Sarah Bohn

The economy is booming in California Source: Bureau of Labor Statistics.

The economy is booming in California #6 in economic growth Source: Bureau of Labor Statistics.

But poverty is high, as is the income divide #50 in poverty Source: PPIC-Stanford California Poverty Measure estimates, 2012–2015.

Income growth has been slow (or negative) for the bottom half Source: PPIC calculations from Current Population Survey data, based on family income in California, normalized for family size and adjusted for inflation.

Job opportunities in California will remain polarized Projected Job Growth Rank Occupation Median Annual Earnings 1 Personal Care Aides $24,419 2 Combined Food Preparation and Serving Workers $24,193 3 Software Developers: Applications $123,085 4 Laborers and Freight, Stock, and Material Movers $28,396 5 Registered Nurses $102,288 6 Waiters and Waitresses $25,818 7 General and Operations Managers $113,686 8 Market Research Analysts, Marketing Specialists $71,473 9 Carpenters $55,361 10 Medical Assistants $35,642 Source: California Employment Development Department, 2016-2026 projections.

What can or should government policy do? Source: PPIC Statewide Survey, May 2017.

What can or should government policy do? Safety net programs: Reduce poverty and inequality by 40% Largely contingent on work…and support a working poor population in California Potential to address barriers to mobility Source: PPIC Statewide Survey, May 2017.

What can or should government policy do? Safety net programs: Reduce poverty and inequality by 40% Largely contingent on work…and support a working poor population in California Potential to address barriers to mobility Education and training: Achievement gaps are driver of disparate economic outcomes Major area of new state investment Must expand career pathways Source: PPIC Statewide Survey, May 2017.

Poverty, the Safety Net, and Building a More Inclusive Economy November 2, 2018 Sarah Bohn