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Data on the Digital Divide
(Taken from the 2000 Index of Silicon Valley)

SPECIAL ANALYSIS: Silicon Valley's Digital Divide

By tracking a broad base of indicators that spans the economy, society and environment, the Index identifies emerging issues facing the region. The 2000 Index reveals a growing Digital Divide in Silicon Valley
 

WHAT IS THE DIGITAL DIVIDE?
The Digital Divide is about more than connecting to the Internet, it is about connecting to opportunity in the new digital economy. Silicon Valley's Digital Divide is the gap between different communities in workforce, education, the economy and technology.
 
WORKFORCE GAP: Our current supply of skilled labor does not meet the needs of the high-technology companies that fuel our region's economy. Joint Venture's Workforce Study, which was released in the spring of 1999, identified a workforce gap of 31 to 37% of the high-tech industry demand for workers in Silicon Valley. The cost of this workforce gap to high-tech industry is approximately $3-4 billion in incremental hiring and opportunity costs.
 


 

 
EDUCATION GAP: On every measure of educational attainment in this year's Index, wide variation exists by ethnicity. This is a particularly critical challenge for Silicon Valley, because low education attainment afflicts our fastest-growing population, Hispanics, most extensively.
  • Fifty-seven percent of Hispanic students graduate high school, compared with 86% of white students and 97% of Asian students.
  • On average, 29% of ninth- and tenth-grade students were enrolled in Intermediate Algebra in 1999, up from 26% in 1998. Only 19% of Hispanics were enrolled.
  • On average, 47% of high-school students completed the course requirements for UC/CSU entrance in 1998. Only 23% of Hispanic students met this requirement.
  • Hispanics earn only 6% of engineering degrees awarded by local universities.

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ECONOMIC GAP: In addition to gaps in our supply of skilled labor and educational preparation, the region faces wide income disparity among different groups. There has been a widening income gap during the 1990s in Silicon Valley. While incomes of the lowest 20% of households have increased slightly the last two years, those incomes are still below 1992 levels.
 
TECHNOLOGY GAP: Access to technology varies by race and income.
  • In the San Francisco Bay Area, 46% of people with household incomes less than $40,000 access the Internet compared to 81% with household incomes more than $80,000 (Bay Area Council, 1999).
  • Thirty-seven percent of Hispanics in the Bay Area use a computer on a frequent basis compared to 59% of non-Hispanic Whites(Public Policy Institute of California, 1999).
BOTH THE NEW ECONOMY AND CHANGING DEMOGRAPHICS AFFECT THE DIGITAL DIVIDE
These gaps widen as the New Economy creates new skills demands at the same time that the demographics of the Valley continue to change. As our population becomes more diverse, special efforts are required to ensure that the Digital Divide does not continue to widen.

As we enter the year 2000, we cross an important demographic milestone: no racial/ethnic group is a statistical majority. Anglos represent 49% of the combined population of Santa Clara and San Mateo counties and only 39% of the school-aged population. Population projections point to increased diversity of our region as we advance toward 2010.
 


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IMPLICATIONS FOR SILICON VALLEY
Joint Venture believes that Silicon Valley's continued economic and social vitality is dependent on our ability to prepare more people in the region for the demands of the new workforce, whether in high tech or other fields. This is the challenge that will be the focus of Joint Venture's work as we explore ways to enable all people in Silicon Valley to succeed in the New Economy.

To list additional events or resources, or for more information, please e-mail SV-CAN@JointVenture.org or call 408/938-1509. This website developed and maintained by the Silicon Valley Civic Action Network (SV-CAN), Joint Venture's newest initiative to engage thousands of residents and workers in achieving the vision and 17 specific goals of Silicon Valley 2010. Funded by the Packard Foundation, this site will grow into a "Network of Networks" for all of the organizations and individuals working as regional stewards of Silicon Valley's future.