Trajectory of Poverty in Los Angeles

Economic inequality remains one of this nation’s most pressing problems, and the large number of poor people is a glaring manifestation. While the poverty rate and income distribution fluctuate with the business cycle, the last several decades have witnessed secular increases in inequality; that is, after controlling for the business cycle, the underlying long-term trend is toward a “widening divide” between rich and poor, particularly in California. Several factors contribute to this, including global competition, rapid technological change, industrial restructuring, increasing returns to education, and a demographic re-composition of the workforce. As a consequence, this nation and state have been unable to reduce the absolute and relative number of poor people over the last few decades.