OECD: Rich earn 14 times more than poor in Israel

Report indicates Israeli income inequality gap widening; inequality among highest in the West.

By
December 5, 2011 15:24
2 minute read.
A homeless man lies on a sidewalk

poverty homeless dirty 311. (photo credit: Marc Israel Sellem)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Income inequality in Israel is among the highest in the developed world, according to a report released Monday by the Organization for Economic Cooperation and Development (OECD). The report indicates that the gap continues to widen despite the fact that Israel was already considered a high-inequality country.

Israel was singled out as one of only two OECD countries in which the real income of those at the bottom of the income ladder actually fell in comparison with the mid-1980s.

Be the first to know - Join our Facebook page.


RELATED:
OECD officials commend Israel on environment
OECD slashes growth forecasts; PM: Cut spending
Child poverty here highest in OECD

The richest ten percent in OECD countries earn, on average, nine times that of the poorest ten percent. In Israel, the richest ten percent earn over 14 times that of the poorest 10 percent. The United States  and Turkey were in the same income equality bracket. The richest ten percent earn over 27 times more than the poorest ten percent in Mexico and Chile.

Using the Gini coefficient, a measure of income inequality that ranges from 0 (where all incomes are identical) to 1 (where all income goes to one individual), Israel measured a 4 percent increase.

The rich-poor divide did not increase in all OECD member states. A number of countries managed to significantly reduce income inequality, including Chile, Mexico, Turkey, Greece, and Hungary.

Student Union Chairman Itzik Shmuli said Monday that "today's OECD report confirms what Israeli citizens have known for a long time already, and is the reason they began protesting." Shmuli's comments were in reference to the 2011 social justice movement, which was launched when 26-year-old Daphni Leef pitched a tent on Tel Aviv's Rothschild Boulevard in protest of high housing prices. The move quickly developed into mass protests, a national movement that lasted for months. In response, the government launched the Trajtenberg Committee on Socioeconomic Change and approved some of its recommendations in October.

Shmuli added his call for Prime Minister Binyamin Netanyahu to "demand an immediate solution for the situation and to release real proposals for the apartment shortage, the education system, and the welfare system instead of continuing to concentrate on tax exemptions for online shopping and other inconsequential dreams that the Treasury is promoting on the back of the protests."



Israel joined the OECD in May 2010 after it fulfilled a number of the organization's recommendations: more efficient supervision of employers’ pension obligations; support for the integration of people with disabilities into the workplace; an increase in Arab representation in the public sector, including support for companies that promote the employment of minorities; creation of a framework for granting foreign workers permanent visas, as is the practice in Europe; and modification of prerequisites for receiving unemployment benefits.

Nadav Shemer contributed to this report

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS