Explaining Southern California's economy

New study says that Californians are economically insecure

Calculate your economic security.

We’re afraid in California. Very afraid. And according to a new study, that’s because nearly one in four Californians experienced large economic losses in 2010. This is what the Rockefeller Foundation and a team of researchers from Yale University found, as part of an ongoing project called the Economic Security Index (ESI).

The ESI was developed using publicly available data. It's defined like this:

The ESI is an annual index that represents the share of Americans who experience at least a 25 percent decline in their inflation-adjusted “available household income” from one year to the next and who lack an adequate financial safety net to replace this lost income until it returns to its original level.

For stats geeks out there, I've grabbed the calculation that underlies and ESI and put it on top of this post.