03/29/2024

Inequality and Economic Security in Silicon Valley

Silicon Valley is known for its technological innovation and economic prosperity. Household incomes in San Mateo, Santa Clara, and San Francisco counties are among the highest in the nation, and the region has a well-educated workforce. Since the Great Recession officially ended in 2009, Silicon Valley has seen substantially stronger job growth than other regions in California overall.

While Silicon Valley’s robust economic growth has led to some economic gains for low- and middle-income families, many residents are still struggling. Income growth for lower-income households has been comparatively weak, and families toward the lower end of the economic spectrum are further squeezed by a rising cost of living. Silicon Valley’s current economic expansion has been “top heavy,” with much of the recent income growth going to very wealthy households, therefore doing little to reverse the generation-long trend of widening income inequality. Compared to 25 years ago, the incomes of the wealthiest households and others are now further apart, and the region’s middle class is smaller. Much like the greater Bay Area and California as a whole, Silicon Valley is a far more unequal place than it used to be.

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