Lack of education, high housing costs play key role in widening socioeconomic gap in California

While the state throws obstacles at the creation of more charter schools, and cities quibble about mere dozens of new affordable units, new data shows that lack of high-school diplomas and skyrocketing housing costs play a key role in expansion of state's sad hourglass economy. Dan Walters reports from CALmatters.

"Thirty four years ago, two researchers delved into California's rapidly changing demographic and economic trends, and saw 'an emerging two-tier economy with Asians and better education non-Hispanic whites and blacks competing for prestigious occupations while poorly educated Hispanics and blacks scrambles for the 'lower status jobs.' (Population Change and California's Future, Martin and Bouvier)

"Martin and Bouvier were, unfortunately, absolutely prescient, as a recent spate of statistical reports confirm:

* At 23.4%, Latino poverty rate is nearly twice the 12.5% among white Californians.

* California has the nation's second highest gap between income and housing costs. On average, a family income of $72,165 a year ($34.69 per hour) is needed to afford the average rent of $1804 a month for a two bedroom apartment. But the average renter earns just $22.79 per hour."

* Education is an especially notable marker in California's two-tier society. Just 7.8% of adults ages 25-64 with college degrees are poverty stricken, but it jumps to 31.8% for those without high school diplomas."

California has the highest poverty rate in the county.

Read the whole thing here.

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