2011 Index of Silicon Valley - Silicon Valley Community Foundation

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Income After falling two years in a row, incomes have stabilized at 2005 levels. ECONO WHY IS THIS IMPORTANT Earnings growth is as important a measure of Silicon Valley’s economic vitality as job growth. A variety of income measures presented together provides an indication of regional prosperity and the distribution of prosperity. Real per capita income rises when a region generates wealth faster than its population increases. The median household income is the income value at the middle of all income values. Examining median income by educational attainment and ethnicity reveals the complexity of our income gap. The Gini Index is the standard measure for income inequality. Tracking trends in food stamp participation provides an additional indication for economic stress in the region. HOW ARE WE DOING The region’s real per capita income ended its two-year long fall in 2010, stabilizing at roughly $62,400. Similar patterns were reported statewide and nationally, returning income to 2005 values. By ethnic group, per capita income fell for all groups between 2007 and 2009 except for Black and Multiple & Other groups, which reported gains of two and six percent, respectively. Whites reported the highest earnings across all three years and took the biggest hit (in dollars) in 2009. Hispanics maintained the lowest per capita income and experienced the largest percentage drop of 7.5 percent from 2007 to 2009. Silicon Valley’s median household income dropped three percent in 2009 to $86,400. Statewide median income inched up less than one percent, while nationally, income slipped two percent. Across all educational levels, real median household income in 2009 sunk to below 2005 levels, and regional losses outpaced those for the state and nation. High school graduates witnessed the greatest income drop of 13 percent over the four-year period. Median income fell only three percent for people with graduate and professional degrees. Income inequality in Silicon Valley, as measured by the Gini Index, appears to be diminishing at a faster rate than in the state and nation. The Gini Index is measured on a scale of zero to one, where perfect income equality is represented by zero and maximum income inequality is represented by one. In 2009, Silicon Valley measured 0.45 on the Gini Index, 0.02 points below both the state and the nation at 0.47. Since 2006, the region has made progress toward greater income equality, with a 1.4 percent drop on the Gini Index. This small improvement stands out when compared to the state’s 0.2 percent increase and the nation’s 1.1 percent increase over the same time period. Food stamp participation in the region is increasing. Since 2007, the percentage of the population participating in the Food Stamp Program increased from 2.6 percent to four percent. Statewide, participation surged from 5.3 percent in 2007 to 8.1 percent in 2010. Nationwide food stamp participation as a percentage of total population reached 13 percent in 2010, compared with only two percent in 1970. 28
MY Per Capita Income (Inflation Adjusted) $80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1990 1992 Santa Clara & San Mateo Counties and U.S. 1994 Real Per Capita Income 1996 Silicon Valley 1998 2000 2002 California Note: Personal income is defined as the sum of wage and salary disbursements (including stock options), supplements to wages and salaries, proprietors’ income, dividends, interest, and rent, and personal current transfer receipts, less contributions for government social insurance Data Source: Moody’s Economy.com Analysis: Collaborative Economics 2004 2006 2008 U.S. 2010 About the 2011 Index | 01 Map of Silicon Valley 02 | Table of Contents | 03 Index 2011 Highlights 04 | 05 Index at a Glance 06 | 07 Special Analysis 08 | 11 PEOPLE 12 | 15 Employment 16–19 Innovation 20-23 Entrepreneurship 24-27 Income 28-31 ECONOMY SOCIETY 32 | 43 Per Capita Income by Race & Ethnicity Santa Clara & San Mateo Counties $70,000 Median Income (Inflation Adjusted) 60,000 50,000 40,000 30,000 20,000 10,000 0 2005 2007 2009 White Alone, not Hispanic or Latino Asian Alone Black or African American Alone Multiple and Other Hispanic or Latino PLACE 44 | 57 Note: Multiple & Other includes Native Hawaiian & Other Pacific Islander Alone, American Indian & Alaska Native Alone, Some Other Race Alone, and Two or More Races Data Source: U.S. Census Bureau, American Community Survey Analysis: Collaborative Economics Percent Change in Per Capita Income – 2007-2009 Silicon Valley California United States White, non-Hispanic -7% -6% -4% Asian, non-Hispanic -3% -2% -3% Black, non-Hispanic +2% -2% -3% Multiple & Other +6% -12% -6% Hispanic -7% -7% -7% Special Analysis cont. 58 | 67 Appendices 68 | 72 Acknowledgme nts | 73 29
Page 1 and 2: i n d e x OF SILICON VALLEY 2011 PE
Page 3 and 4: ABOUT THE 2011 SILICON VALLEY INDEX
Page 5 and 6: TABLE OF CONTENTS 2011 INDEX HIGHLI
Page 7 and 8: Attracting talent from abroad is im
Page 9 and 10: SOCIETY Educational and health outc
Page 11 and 12: Special Analysis The Crisis in Loca
Page 13 and 14: Silicon Valley’s experience has m
Page 15 and 16: 40,000 Net Migration Flows Foreign
Page 17 and 18: Science & Engineering Degrees Confe
Page 19 and 20: MY Employment Total Employed Reside
Page 21 and 22: MY Total Number of Jobs in Employme
Page 23 and 24: MY 12,000 10,000 Patent Registratio
Page 25 and 26: MY Billions of Dollars Invested (In
Page 27 and 28: MY 0.5% 0.4% Percent of Population
Page 29: MY 100% 90% 80% Percentage of Nonem
Page 33 and 34: MY Perfect Income Inequality = Gini
Page 35 and 36: Percentage of Eighth Graders Tested
Page 37 and 38: 50% 45% 40% Percent of Students Rec
Page 39 and 40: Vibrant Nightlife San Jose-Sunnyval
Page 41 and 42: Percentage of Population with Healt
Page 43 and 44: Teen Births Teen Births per 1,000 F
Page 45 and 46: Number of Drug and Alcohol Rehabili
Page 47 and 48: Per Capita Water Consumption % Chan
Page 49 and 50: Fuel Consumption per Capita San Mat
Page 51 and 52: About the 2011 Index | 01 Map of Si
Page 53 and 54: 80% 70% 60% 50% Housing Near Transi
Page 55 and 56: Average Rent (Inflation Adjusted) A
Page 57 and 58: 10,000 9,000 8,000 7,000 6,000 5,00
Page 59 and 60: $9 8 Commercial Rents Annual Averag
Page 61 and 62: Figure 2-2 $4.0 City Revenue Aggreg
Page 63 and 64: These trends indicate that all majo
Page 65 and 66: Trends in County Revenue and Expend
Page 67 and 68: County Expenditures In terms of cou
Page 69 and 70: Based on San Mateo County June 2010
Page 71 and 72: Establishment Churn The National Es
Page 73 and 74: Time Required for Permitting of Ren
Page 75 and 76: ACKNOWLEDGMENTS Special thanks to t

2011 Index of Silicon Valley - Silicon Valley Community Foundation

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