4 Economic Conditions

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1 4 Economic Conditions Socio-economic conditions can significantly affect a population s well-being and access to healthy living. Rising socio-economic status tends to improve health outcomes, while falling socio-economic status tends to decrease levels of health and wellness. Differences in social status, income and wealth, and opportunities for a quality education, are often associated with health impacts that disproportionately affect certain populations, such as the poor, young children, and the elderly. Income is one of the strongest predictors of health outcomes worldwide. Health care access, outcomes, and life expectancy improve as income increases. Lower incomes are associated with higher rates of mortality, premature births, and other health issues. Households with higher incomes are likely to have more educated residents, lower unemployment rates, and better access to healthcare. These factors contribute to better health outcomes related to mortality, premature births, and other health indicators., When households earn incomes much lower than the average cost of living, they tend to make sacrifices in important areas. Those lifestyle compromises can include eating less food and/or more unhealthy food, living in substandard housing, and/or delaying medical care. Additionally, the lack of resources to meet basic needs causes long-term stress, which makes the body less resistant to other health risks. 3 Like race, average household income is strongly correlated with neighborhood condition. 4 Concentrated poverty matters because it leads to increased crime rates and poor health outcomes. Violent crime rates tend to be higher in economically-distressed neighborhoods. Finally, residents living in low-income neighborhoods tend to have worse physical and mental health issues, such as asthma, depression, diabetes, and heart conditions, compared to higher-income areas. 6 Being unemployed, underemployed, or concerned about job security are common contributors to adverse health effects. Unemployed people may have sleep disorders, anxiety disorders, and substance addictions that, in turn, cause increased demands on the health care system and higher societal costs. 7 Additionally, unemployed men have been found to have increased mortality rates, particularly from suicide and lung cancer. 8 MAPS AND INDICATORS The Economic Conditions Chapter of the Health Atlas provides information about the location of economic hardship, income, poverty, and unemployment for the of. The following describes each of the maps included within this section and the data associated with each map. Hardship Index by Community Plan Area: The Hardship Index compares the 0 economic conditions of one place to another. Based on a methodology developed by the Nelson A. Rockefeller Institute of Government, the Index standardizes U.S. Census Bureau demographic and socio-economic variables, including unemployment, age dependency, education, income level, crowded housing, and poverty, and then averages them together, yielding a score on a scale of 0-0. The map shows the Hardship Index for CPAs in the of. Hardship Index: The map shows the Hardship Index for census tracts in the of in 0. Median Household Income: The median household income map shows the amount of money, or its equivalent, that a household receives within a period of time in exchange for labor, services, or the sale of goods. The median divides the income distribution into two equal parts: one-half of the cases falling below the median income and one-half above the median. Data is from the 0 U.S. Census ACS -year Estimates. Number of Jobs with Earnings Greater than $3,333 per Month: This map examines the number of higher-wage jobs in the of based on data from the U.S. Census Longitudinal Employer-Household Dynamics (LEHD) Survey in 0. According to the U.S. Census Bureau definition, higher wage jobs are those that pay $3,333 per month or more ($40,000 per year). Percentage of Unemployed Workers Age 6 and Over: The map shows the percentage of residents age 6 and over who are actively looking for employment and are unable to find a job. This does not include workers who have stopped seeking employment. Data is from the 0 U.S. Census ACS -year Estimates. Percent of the Population below the Federal Poverty Level: The map shows the percentage of the population below the Federal Poverty Level (FPL) in 0. The FPL for a family of four was $,00 in 0. Data is from the 0 U.S. Census ACS -year Estimates. Percent of the Population 00% Below the Federal Poverty Level: The map shows the percentage of the population that is below 00% of the FPL in 0. Two hundred percent of the FPL for a family of four was $44,0 in 0. Data is from the 0 U.S. Census ACS -year Estimates. Extreme Poverty Neighborhoods: The map shows the percentage of residents living in census tracts with poverty rates greater than 40%. Data is from the 0 U.S. Census ACS -year Estimates. Marmot, M. (00, March/April). The Influence of Income on Health: Views of an Epidemiologist. Health Affairs, (), pp Retrieved from Bhatia, R. and Katz, M. (00). Estimation of Health Benefits from a Local Living Wage Ordinance. American Journal of Public Health: 9(9), pp Haan M., Kaplan G.A., and Camacho T. (987). Poverty and health: Prospective evidence from the Alameda County Study. American Journal of Epidemiology: (6), pp Marmot, M. (00, March/April). The Influence of Income on Health: Views of an Epidemiologist. Health Affairs, (), pp Retrieved from 4 Robert Wood Johnson Foundation. (0, May). Exploring the Social Determinants of Health Series. Issue Brief #8: Neighborhoods and Health. Retrieved from Ellen, I. G. and Turner, M. A. (997). Does Neighborhood Matter? Assessing Recent Evidence. Housing Policy Debate, 8(4), pp Cohen, D. A, et. al. Neighborhood Physical Conditions and Health. American Journal of Public Health, 93(3), pp Kroll, L. E. and Lampert, T. (0). Unemployment, Social Support and Health Problems: Results of the GEDA Study in Germany. Dtsch Arztebl Int.; 8(4). pp Wilson, S.H. and Walker, G.M. (993) Unemployment and Health: A Review. Public Health: 7(3), pp Health Atlas for the of 7

2 KEY FINDINGS HARDSHIP INDEX The Hardship Index was developed by the Nelson A. Rockefeller Institute of Government to compare the economic conditions of one place to another. The Index standardizes the following six variables on a scale of 0-0 and then averages them together: Age: Percentage of population over age 6 and the percentage of population under age 8 (Map and Map 3) Education: Percentage of population over age that did not graduate high school (Map 6) Employment Status: Percentage of unemployed workers age 6 and over (Map ) Income: Household income (Map 0) Overcrowding: Percentage of housing units with more than one person per room (Map 3) Poverty: Percentage of population with income less than the Federal Poverty Level (Map 3) Map 8 and Figure 7 shows the Hardship Index score for each CPA. Most CPAs in had low or very low levels of hardship. 9 Twenty of the 3 CPAs analyzed (7%) had scores below the average Hardship Index score of 48, and approximately half of the s residents live within these areas. 0 These areas include many of the CPAs in the western portion of the, including Bel Air-Beverly,, Westchester-Playa del Rey, Brentwood-, West,, and Palms-Mar Vista-, which have very low levels of hardship. Six CPAs had high or very high levels of hardship, including -Harbor, Arleta-,,,, and east. east Los Angeles is the only CPA that fell within the very high category, with a Hardship Index score two standard deviations above the average. Figure 7: Hardship Index by Community Plan Area in 0 Source: 0 U.S. Census. Accessed from American FactFinder. Map 9 shows the Hardship Index score for each census tract in. The average Hardship Index score was 40.6, with a standard deviation of. Nearly one-fifth of census tracts had very low Hardship Index scores, with some of the lowest scores in the census tracts in the Santa Monica Mountains. One in eight census tracts in the had very high levels of hardship. Most of these tracts were located in the east,,,, and Arleta- CPAs. By far, the census tract with the highest Hardship Index score was adjacent to. 9 CPAs were classified as low or very low hardship if their scores were below the average score for all CPAs, per the original Rockefeller Institute Study. CPAs were classified as high or very high hardship if their score exceeded or standard deviations from the mean, respectively. 0 Due to lack of data, Hardship Index scores were not calculated for the and CPAs. 8

3 INCOME The Health Atlas includes two separate measures of income for the of : per capita income and median household income. Per capita income is the total income divided by the total population, and the data is summarized by CPA. Median household income represents the middle income for an area, with half of all incomes below and half above the median value. The data is available at the census tract level. In terms of per capita income, the Bel Air-Beverly Crest and Brentwood- CPAs had the highest incomes, ranging from 7 to times that of the lowest areas. The CPAs with the lowest per capita income included east, Los Angeles,,, Arleta-, and Central, each of whose residents had per capita income less than $4,000 per year. Figure 8: 0 Per Capita Income by Community Plan Area in 0 Source: 0 U.S. Census. Accessed from American FactFinder. The pattern of median household income is similar to that of per capita income. As shown on Map 0, the areas with the highest median household income were located on the Westside of the, in the Santa Monica Mountains, and along the northern and western sides of the San Fernando Valley. Areas with lower median household income were found throughout the, with concentrations in, Central,, Central,, Central,, and parts of and. The Family Economic Self-Sufficiency Standard (FESSS) estimates the amount of money a family needs to meet their basic needs in a specific region. Basic needs include housing, food, and health care, and work related expenses such as transportation, childcare, and taxes. The estimated FESSS for two adults, an infant, and a school-aged child in County in 008 was $70,47., Only those census tracts shown on Map 0 in dark orange exceed this target for a family of four. In 0, the rate of unemployment for all workers age 6 and over was 8.7% in County 9.% in the of. This is well above the 6.% historic, natural rate of unemployment 3 and the current Federal Reserve target rate of unemployment 6.%. 4 Map shows the percentage of unemployed workers age 6 and over by census tracts. Of all CPAs, Bel Air-Beverly Crest had the lowest unemployment rate at 4%, less than half of the and County averages. Twenty of the CPAs were within % of the average unemployment rate for the. Central and had the highest rates of unemployment in the, at % and 3%, respectively. for Community Economic Development. (0). How Much is Enough in County? Retrieved from Insight for Community and Economic Development. (October 0). Methodology Appendix: The Self-Sufficiency Standard for California 0. Retrieved from 3 Daly, M., Hobijn, B., and Valletta, R. (0, July). The Recent Evolution of the Natural Rate of Unemployment. IZA Discussion Paper Series. Retrieved from 4 Lee, D. and Puzzanghera, J. (0, December 3). Fed to tie interest rate to job gains. Retrieved from Health Atlas for the of 9

4 Figure 9: 0 Unemployment Rate by Community Plan Area Source: 0 U.S. Census. Accessed from American FactFinder. POVERTY Poverty is defined as the deprivation of food, clothing, shelter, and money that occurs when an individual or family cannot meet its basic needs. The Federal government's primary measure of poverty is the Federal Poverty Level (FPL) or poverty threshold. The poverty level for a family of four was $,00 in 0 and 00% of FPL for a family of four was $44,0. In 0, 9% of the population in the of was living in poverty, while nearly half of the population (48%) was within 00% of the Federal Poverty Level. The percentage of the population living below the Federal Poverty Level (FPL) was highest in Central and Central (greater than 40%). The percentage of the population living below 00% FPL was highest in east,, Central,, Central, and (greater than %). Map 3 shows the percentage of the population below the poverty level, and Map 4 shows the percentage of the population below 00% of the poverty level. Figure : Percentage of the Population below the Federal Poverty Level and Below 00% of the Federal Poverty Level by Community Plan Area in 0 Source: 0 U.S. Census. Accessed from American FactFinder. 30

5 Concentrated poverty is associated with higher crime rates and worse health outcomes. A census tract is considered high poverty if 40% or more of the population lives below the poverty line. While the use of a threshold may be relatively arbitrary, the 40% threshold has been well documented and has been incorporated into Federal program rules. 6 Map shows these concentrations of poverty. For the of, approximately 300,000 people were living in census tracts facing extreme poverty, distributed among half of the CPAs. This represented 8% of the s total population. Over two-thirds of those residents lived in four CPAs: Central,, east, and. In particular, accounted for a third of those residents living in the extreme poverty tracts for the entire. Although the CPA has a high proportion of the population living in extreme poverty tracts, this is a reflection of the large student population at. Figure : Percentage of the Population Living in Extreme Poverty Census Tracts by Community Plan Area in 0 Source: 0 U.S. Census. Accessed from American FactFinder. Elizabeth, K., Carey N., and Berube, A. (0, November). The Re-Emergence of Concentrated Poverty: Metropolitan Trends in the 000s. Metropolitan Policy Program at Brookings. Retrieved from 6 Jargowsky, P. (003, May). Stunning Progress, Hidden Problems: The Dramatic Decline of Concentrated Poverty in the 990s. The Brookings Institute. Retrieved from Health Atlas for the of 3

6 Map 8 Hardship Index by Community Plan Area (0) 8 70 Studio east Marina River 7 Hardship Index by Community Plan Area Less than to to 6.03 Greater than 6.03 Index Not Calculated Proposed Hardship Index data compiled from the U.S. Census American FactFinder website. The Hardship Index was developed by the Nelson A. Rockefeller Institute of Government to compare economic conditions of one place to another. The Index standardizes demographic and socio-economic variables, including unemployment, age dependency,education, income level, crowded housing, and poverty, and then averages them together, yielding a score on a scale of 0-0. Higher values indicate greater hardship. The index was calculated only in areas that had data for of the 6 variables. Data Sources: Index Data, 0 U.S. Census;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles

7 Map 9 Hardship Index (0) Studio 40 east Marina River 7 Hardship Index by Census Tract Less than (Lowest % Scores) to 40. (% to 0%) 40. to 0. (0% to 7%) 0. to 7.38 (7% to 90%) Greater than 7.38 (Highest %) Index Not Calculated Proposed Hardship Index data compiled from the U.S. Census American FactFinder website. The Hardship Index was developed by the Nelson A. Rockefeller Institute of Government to compare economic conditions of one place to another. The Index standardizes demographic and socio-economic variables, including unemployment, age dependency,education, income level, crowded housing, and poverty, and then averages them together, yielding a score on a scale of 0-0. Higher values indicate greater hardship. The index was calculated only in areas that had data for of the 6 variables. Data Sources: Index Data, 0 U.S. Census;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles 33

8 Map 0 Median Household Income (0) 8 70 Studio east Marina River 7 Median Household Income Less than $,3 $,3 to $0,08 $0,08 to $6,63 $6,63 to $70,47 Greater than $70,47 Population less than 00 per SM Proposed income data compiled from the U.S. Census American FactFinder website. In 0, the median household income for the was $0,08, and it was $6,63 for California, per the U.S. Census. The self-sufficiency standard for a family of four in was $70,47, per the for Community Economic Development. Tracts include areas with a population density greater than 00 persons per square mile. Data Sources: Income Data, 0 U.S. Census;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles

9 Map Number of Jobs with Earnings Greater than $3,333 per Month (0) Studio 40 east Marina River 7 Number of Jobs with Monthly Earnings Greater than $3,333 No Jobs Reported Less than 0 0 to 0 0 to 300 Greater than 300 Proposed wage data compiled from the U.S. Census LEHD website. A job with monthly earnings greater than $3,333 made at least $40,000 per year. The median household income for the of was $0,08 in 0. Data Sources: Wage Data, 0 U.S. Census LEHD;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles 3

10 Map Percentage of Unemployed Workers Age 6 and Over (0) 8 70 Studio east Marina River 7 Unemployed Workers Age 6 and Over Less than % % to % % to % Greater than % Population less than 00 per SM Proposed unemployment data compiled from the U.S. Census American FactFinder website. Tracts include areas with a population density greater than 00 persons per square mile. Data Sources: Employment Data, 0 U.S. Census;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles

11 Map 3 Percentage of the Population Below the Federal Poverty Level (0) 8 70 Studio east Marina River 7 Population Below the Poverty Level Less than % % to 0% 0% to 30% 30% to 40% Greater than 40% Population less than 00 per SM Proposed poverty data compiled from the U.S. Census American FactFinder website. For a family of four, the Federal Poverty Level was $,3. Extreme poverty neighborhoods are defined as those Census tracts with 40% or more living in poverty, per the Brookings Institute "The Re-Emergence of Concentrated Poverty" paper. Tracts include areas with a population density greater than 00 persons per square mile (SM). Data Sources: Poverty Data, 0 U.S. Census;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles 37

12 Map 4 Percentage of the Population 00% Below the Federal Poverty Level (0) 8 70 Studio east Marina River 7 Population 00% Below the Poverty Level Less than 0% 0% to 3% 3% to 0% 0% to 6% Greater than 6% Population less than 00 per SM Proposed poverty data compiled from the U.S. Census American FactFinder website. For a family of four, the Federal Poverty Level was $,3. 00% of the Federal Poverty Level is $44,6. The map shows Census tracts with a population density greater than 00 persons per square mile. Data Sources: Poverty Data, 0 U.S. Census;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles

13 Map Extreme Poverty Neighborhoods (0) 8 70 Studio east Marina River 7 Extreme Poverty Neighborhoods Less than 40% Greater than 40% Population less than 00 per SM 9 Proposed 40 0 poverty data compiled from the U.S. Census American FactFinder website. For a family of four, the Federal Poverty Level was $,3. Extreme poverty neighborhoods are defined as those Census tracts with 40% or more living in poverty, per the Brookings Institute "The Re-Emergence of Concentrated Poverty" paper. Tracts include areas with a population density greater than 00 persons per square mile (SM). Data Sources: Poverty Data, 0 U.S. Census;, 0 of Department of Planning; Metro Rail and Liner Routes and Stations, 0 Metro; Metrolink Lines, 006 County Urban Research; Metrolink Stations, 0 Raimi + Associates; Proposed Metro Rail Routes and Stations, 0 Raimi + Associates;, 008 Tele Atlas America, Inc.; World Terrain Base, 009 ESRI. Permission for use of these proprietary data is granted by the of Department of Planning. Copyright 03 of. All Rights Reserved. Produced by Raimi + Associates for the of and County. Made possible with funding from the s for Disease Control and Prevention through the County Department of Public Health and The California Endowment May Miles 39

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