A report published by the nonprofit California Budget Project has found that job growth in California was considerably concentrated at the highest and lowest ends of the earnings range.
According to the report, A Generation of Widening Inequality, which was issued on Aug. 23, the gap between the two ends has widened in the past decade and will continue to do so in the coming years. The report found that more than 70% of the jobs created in the state between 1989 and 1999 had hourly earnings in either the bottom or top fifth of the earnings distribution, compared with 45.5% between 1979 and 1989.
The report also found that more than two of three jobs created between 1999 and 2005 had earnings in the top or bottom fifth of the distribution. Income has become concentrated among the highest-income workers, the report concluded, because of a “sharp decline in the purchasing power of low-wage workers’ hourly earnings and a substantial gain in the purchasing power of high-wage workers’ hourly earnings.”