A number of readers contacted me over the weekend to criticize our story, "Bay Area's Biggest Wealth Gap Is in Berkeley."
These readers argued that the gap between rich and poor is widest in Berkeley primarily because the city is home to large numbers of students, who, in the words of one reader, are "only temporarily poor."
But the inequality, revealed in recently released data from the Census Bureau, is not linked to Berkeley's large student population, the figures show.
For one thing, in creating its measure of inequality, the Gini Index, the Census Bureau specifically excluded all group-housing "households," meaning that the income of every Cal student living in a dormitory, fraternity or student-owned cooperative house did not affect Berkeley's ranking.
For another — and this is what made me think that the story was worth writing — the census figures showed that Berkeley has a much bigger wealth gap than other, similarly sized college towns with large public universities.
The Gini Index, measures, on a scale from 0 to 1, the extent to which an area’s wealth is concentrated within a small percentage of the population. A jurisdiction where one household controls all the wealth would be given a score of 1 on the index — named for Corrado Gini, an Italian statistician — while an area where income distribution is perfectly even would be scored at zero.
Berkeley's score, 0.516, the highest in the Bay Area, was also higher than those of Davis (0.486), Santa Cruz (0.481), Ann Arbor (0.487) and Madison (0.460) — all of which scored closer to the national average of 0.469.
So rather than the large student population, Berkeley's income disparities likely have more to do with the causes I identified in the story, including the wealth gap between the Hills and the Flats and between the city's white and African-American residents, as well as the voiding of some of the city's more progressive policies by state and federal officails. In addition, in a positive take, Alan Berube, a senior fellow at the Brookings Institution, notes that Berkeley — unlike affluent suburbs on the other side of the Caldecott Tunnel — is generous enough to provide housing where poor people can afford to live.
Isobel W
Thank you for this update and for clarifying that the wealth gap is not caused by students. And for clarifying that by virtue of being a diverse city, we have poor people! But you still did not respond to request for clarifications regarding your statement that "the area of central Berkeley bounded by University Avenue and Oxford Street has one of the highest concentrations of poverty in the Bay Area." First of all, what are the two other streets in this boundary? Do you mean south of University or north? Does this represent a specific census tract that the researcher looked at? More info please!
Source: The Bay Citizen (http://s.tt/13XTb)
ml b
It appears that the articles you have been writing address the question of which Bay area City has the highest level of inequality without adequately addressing the reasons in the larger context of inequality in the United States, California, and the Bay area, and most importantly, addressing steps that bay area cities are taking to remedy it. Urban flight to the suburbs beginning in the 50's was to develop homogeneous towns that would serve the middle classes and that still goes on. And so, what you need to address is not why there is more inequality in cities which attempt to promote diversity, such as, Berkeley, but why so many other bay area cities and towns are still so homogenously poor like Richmond or so exclusively wealthy like Orinda or Ross, CA. This would include an examination of the relative public policies and how they are utilized in a comparative study of bay area communities including land zoning laws. I agree with the respondent who suggested the title, 'Other Bay Area Cities Force Out Poor, But not Berkeley'.
charanga
I agree that a more relevant title would have been "Other Bay Area Cities Force Out Poor, But not Berkeley." It's not always comfortable living in economic diversity -- the haves with the have-nots. But somehow Berkeley does it without the economic-based partisan gridlock we see nationally.
I'd also like to know the boundaries of "one of the highest concentrations of poverty in the Bay Area."
Aaron Glantz
The downtown Berkeley Census tract with "one of the highest concentrations of poverty in the Bay Area" is bounded by Oxford and Fulton Streets (the street changes names in the middle of the tract), Martin Luther King Way, University Avenue, and Dwight.
Nadja Adolf
Most of those who attend Berkeley are from families in the upper 5% anyway.
Eric Westby
@Nadja Adolf, could you provide a source for your statistic? I'm skeptical that it's remotely true. In my experience "most of those who attend Berkeley" are solidly middle-class.
Lee Bernstein
I found this article quite informative. I have long noticed that countries with large Gini coefficients tend to have low human development indices and, in general a large degree of personal misery. There is also a tendency for fundamentalist/nationalist attitudes to dominate in these areas, such as Northwestern Africa.
I am curious as to whether, in this country, there is a correlation between high Gini coefficients and the academic "achievement gap" between African-American and White students. I've played with CST (California Standards Test) data for quite some time and reluctantly admit that Berkeley public schools have one of the larger achievement gaps in the Bay Area. There has been much public attention paid to this gap in Berkeley, including a "Vision 2020" campaign intended to remove it by 2020. I can't help but wonder if the base cause of the gap includes income/wealth inequality that cannot be addressed by the school district directly.
jordan harrison
I don't think your arguments prove that the wealth gap in Berkeley is not caused by the student population. It does not matter that the Gini index calculation excluded group housing because not all students live in group housing. Most do not. In the census tract you reference, Tract #4229, which is basically the downtown area, 85% of the population is aged 18-24.
Also, comparing Berkeley's Gini index to the those other college towns with Gini scores closer to the national average does not disprove that students cause the wealth gap in Berkeley. Housing is less expensive in those other towns. Because Berkeley is more expensive, there are more wealthy households. Therefore, the range of incomes in Berkeley will be wider with a lot households on the high-income end and a lot of households on the low-income (student) end, leading to a higher Gini score.
Another factor would be the proportion of younger people who are presumably lower-income students. Where there is a higher proportion of student age population one would expect a lower Gini score because the students' low incomes will pull the score towards more equitable. In Berkeley, roughly 20% of the population is 18-24 years old; in Davis it is 30%. (And this calculation factored out the group housing population).
You discuss research by Alan Berube. Could you please provide a reference to that research? I have briefly looked through his publications on the Brookings website and have not found one that supports your conclusions.