Framing
Social cohesion refers to the strength of relationships and the sense of solidarity among members of a community. It encompasses shared values, trust, and a sense of belonging, enabling individuals to feel part of a common enterprise and to face shared challenges together. In California, income inequality has significantly increased over recent decades, positioning the state among those with the widest income disparities in the nation. Between 1980 and 2022, there has been a 68% income increase for the highest earners and a modest 10% rise for the lowest earners in California. As of 2023, only two other states exhibited wider income gaps. Research indicates that higher income inequality correlates with lower levels of happiness and well-being, as individuals may engage in unfavorable social comparisons, decreasing trust and social cohesion. Studies show that social participation and perceived neighborhood cohesion positively impact individual happiness and well-being, enhancing feelings of safety, support, and belonging.
Policy spotlight
* The California Earned Income Tax Credit (CalEITC) was established through Senate Bill 80 in 2015. This legislation introduced a supplemental cash-back credit aimed at assisting low-income working families. The program has since undergone several expansions, including Senate Bill 106 in 2017 (which included self-employment income) and a 2020 expansion under Governor Gavin Newsom that increased the investment to over $1 billion and introduced the Young Child Tax Credit (YCTC) to provide additional support to families with children under six. * The Reparations Task Force (Assembly Bill 3121, 2020) was established to study and develop proposals for compensating African Americans for historical injustices, with ongoing legislative efforts to implement recommendations.
Justice lens
* California's income inequality is deeply tied to racial and geographic disparities. Black and Latino workers earn significantly less than white workers, with Black women facing some of the widest wage gaps. Latino families in affluent areas like Marin County are more likely to struggle financially compared to white families. * Geographically, income inequality varies widely, with lower-income communities concentrated in the Central Valley and Inland Empire facing higher unemployment and fewer economic opportunities. * Immigrants, especially undocumented workers, are disproportionately represented in low-wage industries, often facing barriers to upward mobility, labor protections, and access to public benefits, which exacerbates income inequality across the state.
Source & citation
Content on this page draws from The California Doughnut Snapshot and Report, used under CC-BY 4.0.
Aritza, A. and Kraus-Polk, J. et al. (2025). The California Doughnut Snapshot and Report. Zenodo. https://doi.org/10.5281/zenodo.17540639