How Similar Are Philadelphia and San Diego?
In this analysis, the first within the Economy League’s Greater Philadelphia Leadership Exchange 2024 -San Diego series meant to provide context for the upcoming conference, we use the Similarity Index to provide a quantitative comparison of Philadelphia and San Diego across a range of socioeconomic dimensions. The index benchmarks U.S. counties along twelve distinct indicators, offering a comprehensive look at how these two regions align and diverge. While Philadelphia and San Diego are geographically and historically distinct, they share several significant socioeconomic trends that present opportunities for shared learning, innovation, and collaboration—key themes at the heart of GPLEX’s mission to explore urban challenges and solutions.
What You Need to Know
Geography vs. Socioeconomics: Despite differences in geography—Philadelphia as a historic East Coast city and San Diego as a West Coast innovation hub—the two cities exhibit key socioeconomic parallels.
Labor Force and Ethnic Diversity: Both cities display similar labor force participation rates and high levels of ethnic diversity, underscoring their active, multicultural populations.
Economic Disparities: San Diego outperforms Philadelphia in several economic metrics, including poverty rates, median household incomes, and GDP per capita, signaling stronger economic conditions in San Diego. At the same time, the cost of living is much higher at San Diego as well.
Industry Strengths: San Diego’s largest employment sector is Professional, Scientific, and Technical Services, while Philadelphia’s is Health Care and Social Assistance, highlighting each city’s distinct economic focus.
Public Safety and Quality of Life: San Diego has a lower crime rate and higher life expectancy than Philadelphia, suggesting differences in public safety, healthcare access, and overall quality of life.
Our Multi-Dimensional Similarity Index
The Similarity Index compares Philadelphia and San Diego using twelve socioeconomic factors, including labor force participation, education, ethnic diversity, income, crime, and healthcare. This multi-dimensional benchmarking approach offers a detailed understanding of how these cities align in certain areas and differ in others. The index uses data from the U.S. Census Bureau (2022), Bureau of Labor Statistics (2022), and Centers for Disease Control and Prevention (CDC) (2022) to ensure accurate and current comparisons.
Our analysis shows both similarities and differences between the two cities in terms of labor force, diversity, and economic conditions. A snapshot of the Key Similarity Index Factors and the relative performance of the two cities have been fleshed out below.
It is also critical to note that the historic, cultural and geographical context of these cities are extremely different – amounting to what is an “apples to oranges” comparison. The foundational metrics and comparative benchmarks for key socioeconomic indicators—including poverty rates, cost of living indices, and crime statistics—exhibit significant variability across these diverse metropolitan areas. A more comprehensive and nuanced analysis of these indicators, taking into account the distinct political and economic landscapes of each city, is essential for drawing meaningful conclusions. The current comparative snapshot should be interpreted with caution, as it provides only a cursory overview of complex urban ecosystems.
Parameter | Definition | Philadelphia | San Diego |
Population | A measure of the total population size in each city relative to other U.S. counties. | 75 | 70 |
Poverty Rate | The percentage of individuals living below the federal poverty line. | 85 | 35 |
Labor Force Participation | The percentage of the working-age population (ages 16-64) that is either employed or actively seeking work. | 60 | 70 |
GDP per Capita | The total economic output (GDP) per person, reflecting the productivity of each city. | 55 | 80 |
Median Household Income (PPP) | The median income of households, adjusted for purchasing power parity to account for differences in cost of living. | 60 | 65 |
Life Expectancy | The average number of years a person is expected to live based on current mortality rates. | 60 | 80 |
Crime Rate | The number of reported crimes per 100,000 people, reflecting public safety. | 80 | 40 |
Ethnic Heterogeneity | A measure of the racial and ethnic diversity in the population. | 85 | 80 |
Educational Attainment | The percentage of the population aged 25 and older with at least a bachelor’s degree. | 65 | 78 |
Gini Coefficient | A measure of income inequality within a city, where 0 represents perfect equality and 100 represents maximum inequality. | 72 | 65 |
Housing Affordability | The relative affordability of housing, taking into account median home prices and incomes. | 55 | 35 |
Labor Force Participation (2022): As on 2022, Philadelphia’s labor force participation rate stands at 61.7%, closely aligned with San Diego’s 62.7%, both performing better than the US average for the year. By 2024, both cities reported a LFP of 62.7%, at par with the country average. (U.S. Census Bureau, 2022).
Ethnic Diversity (2022): Philadelphia’s population is 39% Black, 34% White, 16% Hispanic, and 7% Asian, reflecting its historic African American community. In contrast, San Diego is 42% White, 30% Hispanic, 17% Asian, and 6% Black, with its diversity shaped by proximity to Latin America and Asia. Both cities rank high in ethnic heterogeneity (U.S. Census Bureau, 2022).
Educational Attainment (2022): 32% of San Diego residents and 31% of Philadelphia residents hold a bachelor’s degree or higher, indicating similarly skilled workforces that are crucial for supporting knowledge-driven industries (U.S. Census Bureau, 2022).
Significant Differences:
Poverty Rates (2022): Philadelphia has a poverty rate of 22.7%, significantly higher than San Diego’s 11.4%. This difference highlights Philadelphia’s deeper systemic economic challenges, including higher unemployment and lower average wages (U.S. Census Bureau, 2022). At the same time, it is critical to note that the cost of living in San Diego is much higher than that in Philadelphia resulting in “hidden” poverty. The definition of the poverty line for a family of four was $40,000, an estimate found to be far lower than what is needed to sustain in the city.
Median Household Income (2022): San Diego’s median household income is $89,000, compared to Philadelphia’s $55,000. This disparity reflects differences in both cost of living and economic opportunities (U.S. Census Bureau, 2022).
GDP per Capita (2021): San Diego’s GDP per capita is $72,000, significantly higher than Philadelphia’s $56,000. This suggests San Diego has a more productive economy, particularly in high-value sectors like biotechnology and defense (Bureau of Economic Analysis, 2021).
Crime Rates (2022): San Diego reports 2,700 incidents per 100,000 residents, compared to Philadelphia’s 4,400 incidents per 100,000. This substantial difference in crime rates indicates greater public safety challenges in Philadelphia (Federal Bureau of Investigation, 2022).
Life Expectancy (2022): San Diego’s residents enjoy a higher life expectancy, averaging 82 years compared to Philadelphia’s 76 years. Factors contributing to this gap include differences in healthcare access, lifestyle, and environmental conditions (Centers for Disease Control and Prevention, 2022).
Industry Comparison: Philadelphia and San Diego’s economic structures reflect their unique industry strengths, which drive employment and economic growth:
San Diego (2022): The largest sector is Professional, Scientific, and Technical Services, which employs 17% of the workforce. This sector is driven by high-value industries such as biotechnology, telecommunications, and defense, positioning San Diego as a leader in innovation and research (Bureau of Labor Statistics, 2022).
Philadelphia (2022): Health Care and Social Assistance is the largest sector, employing 23% of the workforce. Philadelphia’s economy relies heavily on its anchor institutions—hospitals and universities—that provide stability and growth potential. The city’s renowned medical and research institutions play a crucial role in its economic fabric (Bureau of Labor Statistics, 2022).
Both cities also show significant employment in Educational Services, reflecting the strong presence of higher education institutions, which contribute to local economies through research, employment, and innovation.
Looking Ahead: Shared Challenges and Opportunities
Philadelphia and San Diego face distinct challenges shaped by geography, history, and economic development, yet they also share opportunities for collaboration in addressing urban issues:
Poverty Reduction and Economic Mobility: Philadelphia can look to San Diego’s strategies in reducing poverty and fostering high-wage industries like technology and research. By diversifying its economy and promoting innovation, Philadelphia can improve economic opportunities for its residents.
Healthcare and Anchor Institutions: San Diego could benefit from Philadelphia’s experience in leveraging healthcare and educational institutions to drive regional economic growth. Philadelphia’s robust healthcare sector offers insights into creating sustainable, community-driven economic models.
Public Safety and Quality of Life: San Diego’s lower crime rates and higher life expectancy provide a model for Philadelphia to explore strategies that focus on improving public safety, healthcare access, and community well-being.
By exploring both the similarities and differences between Philadelphia and San Diego, this analysis provides fresh perspectives on how these cities can collaborate on solutions for economic resilience, public safety, and inclusive growth.
Sources:
U.S. Census Bureau (2022). American Community Survey 5-Year Estimates.
Bureau of Labor Statistics (2022). Employment Data by Industry.
Bureau of Economic Analysis (2021). Regional Economic Accounts.
Federal Bureau of Investigation (2022). Crime Data Explorer.
Centers for Disease Control and Prevention (2022). National Vital Statistics Reports.