Israel:<\/span><\/p>\nA Social Report \u2013 2013 finds Israel at the top of the graphs of inequality<\/p>\n
and poverty among developed nations, at a time when inequality has come to be<\/p>\n
recognized throughout the world as a social and economic threat. However, this<\/p>\n
recognition has yet to be realized in Israel: here the government opts to deal<\/p>\n
with it \u2013 or to be exact, not to deal with it \u2013 by setting up committees to<\/p>\n
effect limited changes, like the Trajtenburg Committee, the Committee on the<\/p>\n
Concentration of the Economy, or the War against Poverty Committee.<\/p>\n
\n
However,<\/p>\n
inequality is a macro-economic and macro-social issue that needs to be dealt<\/p>\n
with at the highest level. What is<\/p>\n
needed is not increasing this or that social security or social assistance<\/p>\n
payment by so many shekels or decreasing prices by a few percentages, but<\/p>\n
rather a concentrated effort on two fronts:<\/p>\n
A.<\/p>\n
Creating balanced economic growth that will create jobs that pay a<\/span><\/p>\nliving wage<\/span>. Side by side with the “start-up<\/p>\nnation” that provides a generous remuneration to its citizens \u2013 who<\/p>\n
constitute approximately 10 percent of employed persons \u2013 and to an even<\/p>\n
greater extent the directors-general of the large corporations and the top one<\/p>\n
percent that benefit from large incomes from capital, there is the other side of<\/p>\n
the nation, constituting three-quarters of employed persons, who earn less than<\/p>\n
the average wage and 30 percent of employed persons who earn the minimum wage<\/p>\n
or less. While the political leadership take pride in the law unemployment rate<\/p>\n
\u2013 5.8 percent — we find that in Arab localities job seekers comprise 15-30<\/p>\n
percent of the work force and that in Jewish development towns job seekers<\/p>\n
comprise 10-15 percent of the work force.<\/p>\n
B.<\/p>\n
Creating an array of social services that balance the unbalanced<\/span><\/p>\neffects of economic growth<\/span>.<\/p>\nFirstly, the general educational level needs to be upgraded: in an era in which<\/p>\n
employment with a decent wage requires higher education, less than 50 percent<\/p>\n
of Israeli youth earn matriculation (bagrut) certificates and only 28.8 percent<\/p>\n
of high school graduates enroll in universities and colleges with 8 years of<\/p>\n
graduation. Another example: the Israeli social security system receives a<\/p>\n
relatively low level of funding \u2013 15.8<\/p>\n
percent of GDP, compared with 20-30 percent GDP in most western European countries.<\/p>\n
The long-term<\/p>\n
effort to promote and empower the private sector by reducing budgetary<\/p>\n
allocations for social services was accompanied by a retrenchment of social<\/p>\n
services, services on which Israelis on the margins of economic development<\/p>\n
depend if they are to take part in future economic and scientific developments.<\/p>\n
Salaries and Household Income<\/span><\/p>\n\u00b7<\/p>\n
In 2012, the annual salary bill of directors-general of the 100 largest<\/p>\n
corporations on the Tel Aviv Stock Exchange was, on average, NIS 4.519 million,<\/p>\n
or NIS 376.6 thousands monthly.<\/p>\n
\u00b7<\/p>\n
The annual salary bill of the five highest earners in these<\/p>\n
corporations was an average of NIS 3.421 million, or NIS 285 thousands monthly.<\/p>\n
\u00b7<\/p>\n
In 2012, the cost of the average salary of a director-general at the<\/p>\n
largest corporations was 42 times the average wage (NIS 9.018) and 87 times the<\/p>\n
minimum wage (NIS 4,300).<\/p>\n
\u00b7<\/p>\n
The State Revenues Authority publishes figures on income from capital<\/p>\n
received by self-employed persons. Unfortunately, the latest figures are for<\/p>\n
2008: that year, the total income of self-employed Israelis from capital was<\/p>\n
NIS 18.3 billion. The top one percent received 74 percent of the total: NIS<\/p>\n
13.5 billion.<\/p>\n
\u00b7<\/p>\n
Israel’s Gini coefficient is among the highest in OECD countries: In<\/p>\n
2010 Israel was fifth highest among 35 countries, with a coefficient of 0.376.<\/p>\n
Since the middle of the 1980s, inequality as measured by the Gini coefficient<\/p>\n
increased in OECD countries by an average of 5.3 percent. In Israel, it<\/p>\n
increased by 15.3 percent.<\/p>\n
\u00b7<\/p>\n
In 2012 women’s average monthly wage <\/span>was 66 percent of men’s,<\/p>\nand women’s<\/span> average hourly wage<\/span> was 84.9 percent of men’s.<\/p>\n\u00b7<\/p>\n
In 2012, the average monthly wage of employed urban Ashkenazi<\/span><\/p>\nworkers (Israeli-born to fathers born in Europe or America) was 42 percent<\/p>\n
above the average monthly wage of all employed urban workers. The wages of employed<\/span><\/p>\nurban Mizrahi workers <\/span>(Israeli-born to fathers born in Asia or<\/p>\nAfrica) was 9 percent above the overall average. The wages of employed Arab<\/span><\/p>\nurban workers was 34 percent below<\/span> the overall average.<\/p>\n\u00b7<\/p>\n
In 2012 households in the top quintile saved an average of NIS 1,168<\/p>\n
per month for retirement, compared with NIS 64 per month for households in the<\/p>\n
bottom quintile.<\/p>\n
Education<\/span><\/p>\n\u00b7<\/p>\n
The education system has yet to see 50 percent of the age cohort<\/p>\n
graduate high school with matriculation diplomas. In 2012, the success rate was<\/p>\n
49.8 percent. Similar results were achieved at the beginning of the decade,<\/p>\n
followed by decreases.<\/p>\n
\u00b7<\/p>\n
Among young people graduating high school in 2004, only 34.6 percent<\/p>\n
had enrolled in universities and academic colleges (not including the Open<\/p>\n
University and teachers’ colleges) by 2012. The enrollees included:<\/p>\n
o<\/p>\n
38 percent of women, compared with 30.8 percent of men;<\/p>\n
o<\/p>\n
43.8 percent of Jewish graduates of academic high schools, compared<\/p>\n
with 30.3 percent of Jews from technological tracks;<\/p>\n
o<\/p>\n
37.8% of Jewish high school graduates, compared with 10% of Arab high<\/p>\n
school graduates.<\/p>\n
Accessibility to Health<\/span><\/p>\nServices<\/p>\n
\u00b7<\/p>\n
In 2012, the monthly outlay of households in the top income decile for<\/p>\n
supplemental and private health insurance policies was NIS 499, that of the<\/p>\n
sixth decile NIS 243 and that of the second decile NIS 111.<\/p>\n
\u00b7<\/p>\n
In 2011, the gap between full funding and actual funding of the basket<\/p>\n
of health services provided by the health funds under the National Health<\/p>\n
Insurance Law continued to grow. The actual cost was NIS 32.67 billion, while<\/p>\n
cost of full funding would have been NIS 48.83 billion.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
The Gap between “Start-up Nation” and the Rest of the Nation<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[146,10],"tags":[319,189,182,109,318,96,119,124,155,816,110],"class_list":["post-1779","post","type-post","status-publish","format-standard","hentry","category-social-report","category-budget-and-economy","tag-ashkenazi-jews","tag-israeli-arabs","tag-higher-education","tag-labor-rights","tag-mizrachi-jews","tag-women","tag-pension","tag-pay-gaps","tag-economic-growth","tag-israel-social-report","tag-state-budget","post-type-research","category-146","category-10"],"acf":[],"yoast_head":"\n
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