A new analysis of income trends in California highlights persistent economic inequality in the state while showing major partisan disagreement over how much government should do to address it.
The report, based on 2024 data from the Public Policy Institute of California (PPIC), finds that California families at the top of the income distribution earn about 11 times more than those at the bottom. While the state has higher median incomes than the rest of the U.S., inequality remains near historic highs.
The data shows significant racial and ethnic disparities. Median income is highest among Asian and White families, while Black and Latino families earn significantly less on average. The report also finds that households headed by college graduates earn far more than those without degrees, and that income varies widely by region, with the Bay Area reporting the highest median incomes.
Overall, families in the top 10% earn substantially more than those in the bottom 10%, reflecting long-term growth at the top while lower incomes have grown more slowly over time.
The report also highlights strong political divisions over how to respond to income inequality. Statewide survey findings show that most Democrats support stronger government action to reduce the income gap, while fewer independents and Republicans agree.
Economists cited in the report note that income differences are driven in part by differences in education, occupation, and access to investment income, with higher-income households more likely to earn from assets such as businesses, stocks, and real estate.
Lower-income households, by contrast, spend a larger share of their earnings on basic needs such as housing, food, transportation and health care, making them more vulnerable to inflation and economic shocks.