Poverty in Israel
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Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
's standard of living is significantly higher than all of the other countries in the region and equal to Western European countries, and is comparable to that of other highly developed countries. Israel was ranked 19th out of 189 countries on the 2019 UN
Human Development Index The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, wh ...
, indicating "very high" development. It is considered a high-income country by the
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
. Israel also has a very high
life expectancy Life expectancy is a statistical measure of the average time an organism is expected to live, based on the year of its birth, current age, and other demographic factors like sex. The most commonly used measure is life expectancy at birth ...
at birth.


History

Following Israel's
establishment Establishment may refer to: * The Establishment, a dominant group or elite that controls a polity or an organization * The Establishment (club), a 1960s club in London, England * The Establishment (Pakistan), political terminology for the military ...
in 1948 and victory in the 1948 Arab–Israeli War which began immediately afterward, the country was impoverished and lacking in foreign currency reserves.
Living standard Standard of living is the level of income, comforts and services available, generally applied to a society or location, rather than to an individual. Standard of living is relevant because it is considered to contribute to an individual's quality ...
s saw some increase in the first year after independence. Israel had to recover from the effects of the war, and saw a wave of mass Jewish immigration from post-war Europe and Middle Eastern countries, doubling the Jewish population in three years. The country was financially overwhelmed and faced a deep economic crisis. As a result, a strict regime of austerity was put in place. Food, furniture, and footwear were heavily
ration Rationing is the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular ...
ed. Rationing allowed for a meager 1,600 calories a day, with additional calories for children, the elderly, and pregnant women. Throughout the austerity period, living standards were preserved at tolerable levels, and the regime of strict rationing enabled the Israeli government to ensure that the entire population was adequately fed, clothed, and sheltered. In 1952, Israel and West Germany signed a reparations agreement. West Germany agreed to pay Israel financial reparations for
the Holocaust The Holocaust, also known as the Shoah, was the genocide of European Jews during World War II. Between 1941 and 1945, Nazi Germany and its collaborators systematically murdered some six million Jews across German-occupied Europe; ...
, ultimately paying over 3 billion
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over a period of 14 years. The agreement went to force in 1953, when the first reparations payments arrived. As a result, most austerity restrictions were lifted that year; some remained in place, and were gradually lifted throughout the following years. The families receiving the reparations payments saw a considerable increase in their standard of living; on average, they doubled their incomes. Throughout the 1950s, Israel was heavily reliant on reparations payments from West Germany, and on financial donations from Jews around the world, especially American Jews. Israel used these sources to invest in its infrastructure and in industrial and agricultural development projects, which allowed the country to become economically self-sufficient. Due to this commitment to development in its first two decades of existence, Israel experienced economic growth rates that exceeded 10% annually. Average living standards rose steadily; between 1950 and 1963, the expenditure of an average wage-earner's family rose 97% in real terms. Between 1955 and 1966, per capita consumption in Israel rose by 221% and in 1963, 93% of the population had electricity and 97% had running water. Israeli historian
Tom Segev Tom Segev ( he, תום שגב; born March 1, 1945) is an Israeli historian, author and journalist. He is associated with Israel's New Historians, a group challenging many of the country's traditional narratives. Biography Segev was born in Jeru ...
described the improvement in living conditions during the 1950s due to the rapid development of the country:
The new industrial and agricultural equipment created better conditions for the worker and the farmer. Soon, display windows began showing merchandise long absent; fruits, vegetables, and various food products. People were able to enjoy apples again and spread their bread with butter instead of margarine. Now it was possible to choose from a variety of clothes, shoes, furniture, paper goods, and electrical equipment. The supply did not equal what was available in developed countries, but it was enough to give the impression that the country was finally emerging from austerity... New power stations arrived, and there were fewer electrical outages. People could now have their own telephone lines and travel on railroad cars offering almost European comfort and luxury.
From 1950 to 1976, Israel managed to raise its standard of living threefold. For instance, consumption of animal protein per capita rose from per day, while during that same period, the percentage of families owning an electric refrigerator increased from 2.4% to 99.0%. Family ownership of other durables also showed increases. From 1970 to 1976, the percentage of families owning a gas/electric range and oven rose from 5% to 51.8%, and a television set from 49.7% to 89.5%. From 1957 to 1976, the percentage of families owning an electric washing machine rose from 6.9% to 74.6%, and from 1955 to 1976, the percentage of families owning a radio rose from 54.7% to 84.2%. The percentage of families owning a car also increased, from 4.1% in 1962 to 31.2% in 1976. One aspect of daily life in Israel that set it apart from much of the world for many years was the absence of television, and then of color television. Television was only introduced in 1966, in schools as an educational tool, and regular public transmissions began in 1968. Even then, all television broadcasts were in black and white, at a time when American and European stations were switching to full-scale color transmissions. Color transmissions were initially banned due to fears of social inequality, although ordinary citizens found ways around this ban, and were only gradually introduced around 1980. In the 1970s, Israeli living standards were comparable with those of some
Western European Western Europe is the western region of Europe. The region's countries and territories vary depending on context. The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the ancient Mediterranean ...
countries. However, the years following the
Yom Kippur War The Yom Kippur War, also known as the Ramadan War, the October War, the 1973 Arab–Israeli War, or the Fourth Arab–Israeli War, was an armed conflict fought from October 6 to 25, 1973 between Israel and a coalition of Arab states led by E ...
saw stalled economic growth and increased inflation. Economic growth was on average 0.4% annually, and living standards saw minimal growth, and eventually became completely stagnant. This continued into the 1980s; the Israeli economy was in a dire situation following a
financial crisis A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and man ...
in 1983, and was saved by the 1985 economic stabilization plan which saw market-oriented reforms to Israel's economy, which had previously been heavily regulated. Despite these reforms, there was no immediate growth in quality of life; by 1989, living standards in Israel had not increased in more than a decade. In addition to the 1985 stabilization plan, mass Jewish immigration from the former Soviet Union in the 1990s brought many highly educated and skilled immigrants to Israel, and the Israeli government implemented effective
macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, and ...
policies. As a result, Israel experienced an economic boom, and living standards rose. In 2002, Israeli living standards began climbing rapidly, and the gap between Israel and many other Western nations in quality of life began to narrow. In the early 2000s, Israeli living standards were comparable with those of Western Europe. In 2006, Israel was rated as having the 23rd-highest quality of life in the world by the
United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoniz ...
Human Development Index The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, wh ...
. In 2010, Israel was ranked 15th in quality of life. In 2011, Bank of Israel Governor Stanley Fischer said that Israel had a standard of living two-thirds as high as that of the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
. In 2011, social justice protests broke out across the country over the high cost of living. In 2012, a report issued by the Taub Center stated that while living standards in Israel were rising, they were rising more slowly than those of other Western countries. In late 2013, the Israeli government approved a series of measures to lower the country's high
cost of living Cost of living is the cost of maintaining a certain standard of living. Changes in the cost of living over time can be operationalized in a cost-of-living index. Cost of living calculations are also used to compare the cost of maintaining a cer ...
. A law was passed to break up large conglomerates and end economic concentration, so as to encourage economic competition. A new committee was also formed to remove import barriers and lower prices, making them more comparable to prices abroad.


Demographics

According to census, Israel's population is 75.4%
Jewish Jews ( he, יְהוּדִים, , ) or Jewish people are an ethnoreligious group and nation originating from the Israelites Israelite origins and kingdom: "The first act in the long drama of Jewish history is the age of the Israelites""The ...
, and 20.5%
Arab The Arabs (singular: Arab; singular ar, عَرَبِيٌّ, DIN 31635: , , plural ar, عَرَب, DIN 31635: , Arabic pronunciation: ), also known as the Arab people, are an ethnic group mainly inhabiting the Arab world in Western Asia, ...
. The Arab population comprise Arab Muslims (including Bedouins), Arab Christians, and Druze. About 4,000
Armenians Armenians ( hy, հայեր, '' hayer'' ) are an ethnic group native to the Armenian highlands of Western Asia. Armenians constitute the main population of Armenia and the ''de facto'' independent Artsakh. There is a wide-ranging diasp ...
and 4,000
Circassians The Circassians (also referred to as Cherkess or Adyghe; Adyghe and Kabardian: Адыгэхэр, romanized: ''Adıgəxər'') are an indigenous Northwest Caucasian ethnic group and nation native to the historical country-region of Circassia ...
live in Israel. There are smaller numbers of people of Jewish heritage or spouses of Jews, non-Arab Christians, and non-Arab Muslims. 3.7% of people are not classified by religion.


In numbers

Israel was ranked 47 out of 194 nations in the Annual Standard of Living Index published by the ''International Living Magazine'' in 2010 (32 in 2020). This index is produced by a consideration of "nine categories:
cost of living Cost of living is the cost of maintaining a certain standard of living. Changes in the cost of living over time can be operationalized in a cost-of-living index. Cost of living calculations are also used to compare the cost of maintaining a cer ...
, culture and leisure, economy, environment, freedom, health, infrastructure, safety and risk, and climate, and also its editors opinions" Each of these is scored on a scale of 0–100, with 100 marking the highest standard. Israel's lower scores were for infrastructure (36) cost of living (39), economy (61), environment (68) and safety (71). Its higher scores were for freedom (92), health (85), climate (84), and culture and leisure (83). Israel was ranked 19th out of 189 nations in the
Human Development Index The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, wh ...
(HDI) 2019 ranking. The country ranked 11th out of 155 nations in the
World Happiness Report The World Happiness Report is a publication that contains articles and rankings of national happiness, based on respondent ratings of their own lives, which the report also correlates with various (quality of) life factors. As of March 2022, Fin ...
of 2017 with a rating of 7.213, landing it between Sweden and Costa Rica.


Modern standard of living


Wealth and income distribution

A 2013 Gallup survey of
median household income The median income is the income amount that divides a population into two equal groups, half having an income above that amount, and half having an income below that amount. It may differ from the mean (or average) income. Both of these are ways o ...
among countries (though without taking taxes and social contributions into account), based on data collected from 2006 to 2012, found Israel to have the 21st highest median household income in the world. A 2014 Credit Suisse report found Israelis to be prosperous by world standards. Defining "wealth" as financial resources (cash, stocks, and bonds) and owned property, adjusted to deduct debt, the report found residents of Israel to be the sixth wealthiest people on average in the Middle East and Asia-Pacific region, trailing only Australia,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
, Japan,
New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
, and
Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the nort ...
. The report also found that average Israeli wealth slightly exceeds average European wealth. However, the national wealth was found to be distributed slightly more inequitably than in most industrialized countries, although wealth distribution was found to be on par with some industrialized European countries and more equitable than in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
, with about 67.3% of national assets held by the richest 10% of the population. This is roughly on par with some European countries, including Sweden,
Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
,
Norway Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and the ...
, and
Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
, as well as China,
Mexico Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
, and
Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
, while wealth is distributed more equitably across most other European countries. According to the Gini Coefficient, Israel has high income inequality and is one of the most unequal among 34
OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
countries. A 2014 Taub Center report likewise found Israel second only to the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
in
disposable income Disposable income is total personal income minus current income taxes. In national accounts definitions, personal income minus personal current taxes equals disposable personal income. Subtracting personal outlays (which includes the major ...
inequality after taxes and government transfers among 22 OECD countries, based on statistics from the mid-2000s. This contradiction may be explained by the presence of the
black Black is a color which results from the absence or complete absorption of visible light. It is an achromatic color, without hue, like white and grey. It is often used symbolically or figuratively to represent darkness. Black and white ...
and
grey Grey (more common in British English) or gray (more common in American English) is an intermediate color between black and white. It is a neutral or achromatic color, meaning literally that it is "without color", because it can be composed o ...
market economies, which the Gini Coefficient does not take into account. Some estimates suggest up to a quarter of economic activity in Israel goes unreported to tax authorities and statisticians. A 2015 OECD report found that the Israeli tax burden was slightly lower than average among OECD countries, with Israelis paying an average of 31.4% of their income in taxes, slightly lower than the OECD average of 34.4%, although this is still significantly higher than the tax burden in the United States, Mexico, and Chile. The report also found Israeli salaries to be lower than the OECD average. Despite high levels of wealth, a major factor affecting purchasing power is the high cost of living in Israel, which is higher than the OECD average. This is seen as having a significant impact on the middle and working classes. However, the cost of living is on the decline. In January 2021
Bituah Leumi Bituah Leumi ( he, המוסד לביטוח לאומי, ''HaMossad LeVituach Leumi'', the National Insurance Institute of Israel) is Israel's national social security agency. It was established on 1 April 1954. Poverty In January 2021 it publish ...
published a report on poverty and inequality in Israel, which showed that 1,980,309 Israelis lived below the poverty line in 2020 - 23% of Israeli citizens and 31.7% of Israeli children. In the Jewish population, the proportion was 17.7%, and in the ultra-Orthodox sector 49%. In the Arab population it was 35.8%. Unemployment benefits alone rescued 23.6% of families from poverty, compared to 2% in 2019.


Material prosperity

The following table contains statistics on the ownership of durable goods among Israeli households in 2015.


Housing

Most Israelis live in apartments. According to the Israeli Central Bureau of Statistics, 33% live in three-room apartments, 28% in four-room apartments, and 13% in five-room apartments. CBS statistics also showed that 5% live in one-room apartments, while only 0.6% of Israelis live in a property with eight rooms or more. The CBS also reports that Israeli households contain .8 persons per room. According to the OECD, the average number of rooms per person is 1.1. In 2014,
home ownership Owner-occupancy or home-ownership is a form of housing tenure in which a person, called the owner-occupier, owner-occupant, or home owner, owns the home in which they live. The home can be a house, such as a single-family house, an apartment, c ...
in Israel stood at 67.3% of the population. This figure stood behind many other developed and developing countries, although still higher than some other developed countries including the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
,
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of overseas regions and territories in the Americas and the Atlantic, Pacific and Indian Oceans. Its metropolitan area ...
, and
Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
. Housing in the country is notoriously expensive, with homes costing an average of 148 monthly salaries. A 2013 report found home ownership was found to have noticeably declined between 1997 and 2012. Many Israelis require mortgages to purchase homes, although mortgages are easy to obtain.


Health

Israel has a system of
universal health care Universal health care (also called universal health coverage, universal coverage, or universal care) is a health care system in which all residents of a particular country or region are assured access to health care. It is generally organized ar ...
run by semi-private non-profit corporations heavily regulated by the government, wherein all citizens are entitled to the same Uniform Benefit Package. All Israeli citizens are required to have membership in one of four Health Maintenance Organizations which are subsidized by taxpayer funds. According to a 2000 study by the
World Health Organization The World Health Organization (WHO) is a specialized agency of the United Nations responsible for international public health. The WHO Constitution states its main objective as "the attainment by all peoples of the highest possible level of ...
, Israel had the 28th best health care system in the world. In 2013,
Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician and m ...
ranked Israel as having the fourth most efficient healthcare system in the world, surpassed only by
Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
, and Japan. Israel's medical facilities are recognized worldwide for their high standards of health services, top-quality medical resources and research, modern hospital facilities, and an impressive ratio of physicians and specialists to the population. Israeli doctors make
NIS Nis, Niš, NiS or NIS may refer to: Places * Niš, a city in Serbia * Nis, Iran, a village * Ness, Lewis ( gd, Nis, links=no), a village in the Outer Hebrides islands Businesses and organizations * Naftna Industrija Srbije, Petroleum Industry o ...
20,000–24,000 (US$5,000–$6,000) per month. Israel has one of the highest life expectancies at birth in the world, ranking 8 out of 224 nations (2009), with an average life expectancy of 80.73. However, Israel's Arab population has a life expectancy of 75.9 years for males, and 79.7 years for females. Israel's
infant mortality rate Infant mortality is the death of young children under the age of 1. This death toll is measured by the infant mortality rate (IMR), which is the probability of deaths of children under one year of age per 1000 live births. The under-five morta ...
is also extremely low, with 2.2 per 1,000 live births for Jews, and 6.4 for Arabs.
Emergency medical services Emergency medical services (EMS), also known as ambulance services or paramedic services, are emergency services that provide urgent pre-hospital treatment and stabilisation for serious illness and injuries and transport to definitive care. ...
are generally provided by
Magen David Adom The Magen David Adom ( he, מגן דוד אדום, abbr. MDA, pronounced ''MAH-dah'' per its Hebrew acronym, ) is Israel's national emergency medical, disaster, ambulance and blood bank service. The name means "Red Shield" or "Red Star of Dav ...
, Israel's national emergency medical, disaster, ambulance, and blood bank service. In some areas, it is supplemented by
Hatzalah Hatzalah (; he, הַצָּלָה, lit=rescue, relief) is one of several Jewish volunteer emergency medical service (EMS) organizations serving mostly areas with Jewish communities around the world, giving free medical service no matter their ...
and the
Palestine Red Crescent Society The Palestine Red Crescent Society ( ar, جمعية الهلال الأحمر الفلسطيني, PRCS) was founded in 1968, by Fathi Arafat, Yasser Arafat's brother. It is a humanitarian organization that is part of the International Red Cro ...
.


Education

According to a 2014 OECD survey, Israel is the fourth most educated country in the world, with about 46% of adults achieving a tertiary qualification. Only
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...
,
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
, and Japan exceed Israel's figures. Israel's educational expenditures comprise 6.9% of its GDP (2004), placing Israel 25th out of 182 on the CIA World Factbook's country comparison of educational expenditures as a percent of GDP. 23.9% of Israel's adult population (age 25+) has achieved a low attainment level of education, 33.1% has achieved a medium attainment level of education, and 39.7% has achieved a high attainment level of education. Israel's literacy rate is 97.1% (2004 est.) Israeli schools are divided into four tracks: public, state-run schools, state-funded
yeshiva A yeshiva (; he, ישיבה, , sitting; pl. , or ) is a traditional Jewish educational institution focused on the study of Rabbinic literature, primarily the Talmud and halacha (Jewish law), while Torah and Jewish philosophy are st ...
s, Arab schools, and bilingual schools for both Jewish and Arab children. Secondary education prepares students for matriculation exams known as
Bagrut Te'udat Bagrut (, ''lit.'' "maturity certificate", Arabic: شهادة بجروت) is a certificate that attests that a student has successfully passed Israel's high school matriculation examination. Bagrut is a prerequisite for higher education ...
. If a student passes, he or she receives a matriculation certificate. Many Jewish schools in Israel have highly developed special education programs for disabled children, libraries, computers, science laboratories, and film editing studios. Typically, after a student graduates, he or she will be conscripted into the Israel Defense Forces,
Israel Border Police The Israel Border Police ( he, מִשְׁמַר הַגְּבוּל, Mišmar Ha-Gvul) is the gendarmerie and border security branch of the Israel National Police. It is also commonly known by its Hebrew abbreviation Magav (), meaning border g ...
, or
Israel Prison Service Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
, although most Arabs are exempt. A student may, however, request to be drafted at a later date to study at a college or university, or a school known as a
Mechina A Mechina Kdam-Tzvait ( he, מכינה קדם צבאית; "pre-military preparatory", plural Mechinot) is an autonomous unit of specialized educational institutions valuing non-formal education and pre-military training in Israel. Funded and su ...
, which prepares them for military or national service. Those who study in a university at this stage do so under a contract in which the Army will pay for their
Bachelor's degree A bachelor's degree (from Middle Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to six ...
, but will extend their service by 2–3 years. Universities generally require a number of matriculation units, a certain grade point average, and a good grade on the
Psychometric Entrance Test The Psychometric Entrance Test (PET) – commonly known in Hebrew as "''ha-Psikhometri''" – is a standardized test that serves as an entrance exam for institutions of higher education in Israel. The PET covers three areas: quantitative reasonin ...
. Israel currently has nine public universities and a number of smaller colleges. According to
Webometrics The science of webometrics (also cybermetrics) tries to measure the World Wide Web to get knowledge about the number and types of hyperlinks, structure of the World Wide Web and using patterns. According to Björneborn and Ingwersen, the definitio ...
, six Israeli universities are among the top 100 universities in
Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...
. All nine Israeli public universities and some colleges are heavily subsidized, and pupils pay only a small part of the actual tuition.


Social classes


Wealthy

In 2013, Israel ranked 10th in the world in percentage of millionaires among the population, with 3.8% of households holding assets in excess of $1 million, and eighth in the percentage of households holding assets in excess of $100 million.


Middle class

A Taub Center report from 2014 notes that the Israeli middle class is divided into the lower and upper-middle classes, with a large income gap between them. The lower middle class, comprising about 40% of the population, has a monthly per capita wage range of NIS 1,950 to NIS 5,000. The upper-middle-class, which comprises about 29% of the population, has a monthly per capita wage range of NIS 5,100 to NIS 12,540.


Poverty

Estimates of the Israeli poverty rate vary. Israel's poverty levels are commonly viewed as high in comparison with other developed countries, although it has been argued that poverty rates are significantly lower than officially reported due to the presence of a large
underground economy A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the ...
in Israel. A report issued by the OECD in 2016 ranks Israel as the country with the highest rates of poverty among its members. Approximately 21 percent of Israelis were found to be living under the poverty line – more than in countries such as Mexico, Turkey, and Chile. The OECD average is a poverty rate of 11 percent. However, it has also been suggested that Israel's true poverty rate is in fact far lower, and the statistics are skewed by significant underreporting of income, as
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
research shows Israel as having one of the largest underground economies in the developed world. One former Bank of Israel chief noted a significant underreporting of income among Arabs and Haredim, and said that based on surveys of household spending rather than income, Israel's actual core poverty rate is around 12% of households. During the late 1980s and 1990s, poverty rates in Israel fluctuated (according to one estimate) from 12.8% in 1989 to 18% in 1994, before falling to about 16% in 1997. The report published by the National Insurance Institute (NII) indicates that poverty levels remained relatively stable in 2006–2007. Roughly 20.5% of Israeli families were found to be living below the poverty line in 2008, a slight increase from the previous year's 20%. Moreover, 24.7% of Israel's residents and 35.9% of its children lived in impoverished conditions.ynet
Ynet (02.14.08, 17:31), accessed 18 August 2008.
Data for the 2006–2007 NII survey indicates that 420,000 impoverished families resided in Israel (1.5 million people), AMIT
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.org.il amit.org.il (02.14.08, 17:31), accessed 18 August 2008. including some 805,000 children. Poverty indicators for families with a Minimum wage">single wage-earner have risen from 22.6% during the last NII survey to 23.9% in the current one. Poverty is high among Ultra-Orthodox Jews and Arab citizens of Israel">Israeli Arabs The Arab citizens of Israel are the largest ethnic minority in the country. They comprise a hybrid community of Israeli citizens with a heritage of Palestinian citizenship, mixed religions (Muslim, Christian or Druze), bilingual in Arabic an ...
. Comparing a March 2011 report by Adalah, to today, poverty in Arab families in Israel has improved by 8–10% in just one decade. Among Israeli Arabs, Druze and
Christian Arabs Arab Christians ( ar, ﺍَﻟْﻤَﺴِﻴﺤِﻴُّﻮﻥ ﺍﻟْﻌَﺮَﺏ, translit=al-Masīḥīyyūn al-ʿArab) are ethnic Arabs, Arab nationals, or Arabic-speakers who adhere to Christianity. The number of Arab Christians who ...
have a higher employment rate than Muslims. Poverty rates are also high among
Haredi Jews Haredi Judaism ( he, ', ; also spelled ''Charedi'' in English; plural ''Haredim'' or ''Charedim'') consists of groups within Orthodox Judaism that are characterized by their strict adherence to ''halakha'' (Jewish law) and traditions, in oppos ...
, as a result of many Haredi men being voluntarily unemployed and opting for religious studies while relying on social assistance instead of working, as well as underemployment due to Haredi schools being exempt from the core curriculum. The Israeli welfare system is less effective than most OECD countries. While the median poverty reduction rate through taxes and welfare among OECD countries is 40%, the figure stands at 25% in Israel, the second-lowest rate in the OECD, behind only the United States. Homelessness is a rare phenomenon. A December 2015 study found there to be about 2,300 homeless people in Israel, out of a population of about 8.5 million. The most common reason for homelessness was substance abuse or alcoholism, followed by financial problems and mental illness.


Social mobility

Social mobility in Israel is high by Western standards. According to statistics from the late 1990s, which, based on other tests, are not believed to have changed significantly, class mobility rates in Israel are between 72 and 74%, higher than in other developed countries including the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
,
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
, and
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of overseas regions and territories in the Americas and the Atlantic, Pacific and Indian Oceans. Its metropolitan area ...
. Although there is relatively high equality of opportunity, there are still significant differences that remain.
Ashkenazi Jews Ashkenazi Jews ( ; he, יְהוּדֵי אַשְׁכְּנַז, translit=Yehudei Ashkenaz, ; yi, אַשכּנזישע ייִדן, Ashkenazishe Yidn), also known as Ashkenazic Jews or ''Ashkenazim'',, Ashkenazi Hebrew pronunciation: , singu ...
were found to be wealthier on average than
Mizrahi Jews Mizrahi Jews ( he, יהודי המִזְרָח), also known as ''Mizrahim'' () or ''Mizrachi'' () and alternatively referred to as Oriental Jews or ''Edot HaMizrach'' (, ), are a grouping of Jewish communities comprising those who remained ...
, who were in turn wealthier than Arabs. Israel is cited as having high social mobility due to the volume of Jewish immigrants in recent history. The current state of Israel shows fluid mobility among these Jewish immigrants. A possible reason for this ethnic difference in mobility is the relatively young age of the state of Israel and how it has changed economically and demographically through 21st century industrialization. Traditionally, there have been three endogenous demographics of Israel. These are Ashkenazi Jews, Mizrahi Jews, and Arabs. As the state of Israel was largely established as a home for Jewish people, immigrants of the religion rapidly migrated to Israel over the course of the 20th century. In terms of numbered population, there were 650,000 Jews in Israel in 1948; however, by 1964 there were over 2 million. There are multiple arguments to how this mobility through industrialization occurred. The "liberal thesis of industrialization" argues that industrialization will provide a higher rate of upward mobility over downward mobility as well as improved
social equality Social equality is a state of affairs in which all individuals within a specific society have equal rights, liberties, and status, possibly including civil rights, freedom of expression, autonomy, and equal access to certain public goods and ...
. The view favored by marxists opposes the liberal thesis, arguing that while industrialization did create increased social mobility in Israel, it has lessened over time and only remained for select groups of people. Both of these views show that there has indeed been a history of high social mobility in Israel in comparison to other developed countries; however, the absolute distribution and application of this high rate to all citizens is likely not fully universal. An additional factor in social mobility is
education Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty ...
. From the below table, average years of schooling are listed for workers, managers, self-employed, and employers. Because there is a significant difference between self-employed and employers (Owners) and managers, it should be evident that less education does not provide a statistical disadvantage in obtaining higher positions of ownership and consequently higher socioeconomic status. In general, Israel is considered a highly educated state and ranks well among modern capitalist countries. The Organization for Economic Co-operation and Development (
OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
) ranks Israel 2nd in the world for countries with a percentage of working adults who have achieved tertiary education (46%), significantly higher than the average at 33%. This is likely a significant reason to why social mobility is relatively high in Israel. However, in most recent social mobility has been declining for many and income inequality has been rising. As stated above, high levels of social mobility have not typically been applying to all demographic sectors of Israel, such as Arabs. The four highest-ranked universities in Israel have chosen to combat this in an effort to improve social mobility. As a result, affirmative action exists for these universities. Applicants for affirmative action are college applicant students who are Arabs, women, blacks, or disabled. There are two programs with the intention of increasing social mobility behind this academic affirmative action. First, affirmative action provides some disadvantaged youth with increased chances of attending top-tier university. Second, it gives some college students an advantage into getting to specific prestige programs at their university. The two programs can fundamentally alter and improve the lives of youth in Israel, who may have otherwise earned less prestigious merit from their college experiences or not have gone to college at all. Consequently, the policy of affirmative action delivers recipients with a premium degree that will enable them to enjoy a higher probability of economic success, as well as improving the social perception of different ethnic and gender demographics in Israel as class leaders. Ethnic occupational mobility in Israel has been viewed as a ladder between the three stratified groups, Ashkenazi Jews, Mizrahi Jews, and Arabs. Higher populations of a group are correlated with larger social communities; therefore, the potential to promote occupational and social mobility are increased. Occupations associated with yielding
intergenerational mobility Social mobility is the movement of individuals, families, households or other categories of people within or between social strata in a society. It is a change in social status relative to one's current social location within a given society ...
vary. Men in Israel who pursue professional or technical careers are often met with improvement for intergenerational occupational mobility. This is very evident today, with the development of "
Silicon Wadi Silicon Wadi ( he, סִילִיקוֹן וְאֵדֵי, ) is a region in Israel that serves as one of the global centres for advanced technology. It spans the Israeli coastal plain, and is cited as among the reasons why the country has ...
", a cluster of software and other global high tech industries near
Tel Aviv Tel Aviv-Yafo ( he, תֵּל־אָבִיב-יָפוֹ, translit=Tēl-ʾĀvīv-Yāfō ; ar, تَلّ أَبِيب – يَافَا, translit=Tall ʾAbīb-Yāfā, links=no), often referred to as just Tel Aviv, is the most populous city in the ...
. Whereas employment in this sector of Israel is highly associated with mobility, employment in administrative and unskilled occupations are associated with a decline in mobility. For women, service sector occupation and social workers show higher levels of mobility compared to those in agricultural related occupations. In addition, means of
social welfare Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
have been instituted to better promote mobility through the provision of housing, education, health care, social services, and employment. These welfare programs were started in the 1970s as a means of combatting stratified ethnic class structure with the intended goal of social mobility. While these programs have prevented critical dangers such as mass hunger or homelessness, it is difficult to prove they have sealed the gap in terms of endogenous ethnic-class structure in Israeli society.


Work and leisure time

Israeli work hours are long by Western standards. The official Israeli workweek is 43 hours, with employers legally prohibited from compelling employees to work more than 47 hours per week. Among men, the average workweek is 45.8 hours, with the average workweek for women at 37.1 hours. The vast majority of Israeli workers also perform work, largely through answering emails, messages, and phone calls, on evenings, weekends, and vacations, though many do so voluntarily. In 2011, Israelis received 19 vacation days on average, less than in Europe but more than in the United States. Most Israelis can afford to take vacations abroad. In 2013, 65% of Israelis vacationed abroad.


Infrastructure

Israel has 42 designated highways and an advanced
road network A street network is a system of interconnecting lines and points (called ''edges'' and ''nodes'' in network science) that represent a system of streets or roads for a given area. A street network provides the foundation for network analysis; for exa ...
which spans over 17,870 kilometers, including over 230 kilometers of freeway.
Israel Railways Israel Railways Ltd. , dba Israel Railways ( he, רַכֶּבֶת יִשְׂרָאֵל, ''Rakevet Yisra'el''), is the state-owned principal railway company responsible for all inter-city, commuter, and freight rail transport in Israel. Isra ...
is Israel's government-owned railway network, which is responsible for all inter city and suburban passenger railways, and for all
freight Cargo consists of bulk goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for commercial gain. ''Cargo'' was originally a shipload but now covers all types of freight, including tran ...
rail traffic in the country. The network is centered in Israel's densely populated coastal plain, and runs through much of the country. The railway has seen investment and growth since the 1990s after decades of neglect and low passenger numbers. There are also six cable car systems, and 47 airports in Israel, as well as seven seaports. Israel also has 176 kilometers of gas pipelines and 261 kilometers of pipelines for refined products.
Bus A bus (contracted from omnibus, with variants multibus, motorbus, autobus, etc.) is a road vehicle that carries significantly more passengers than an average car or van. It is most commonly used in public transport, but is also in use for cha ...
es are the country's main form of public transport, and the country has a popular
share taxi Share may refer to: * Share, to make joint use of a resource (such as food, money, or space); see Sharing * Share (finance), a stock or other financial security (such as a mutual fund) * Share, Kwara, a town and LGA in Kwara State, Nigeria Share ...
service. Jerusalem has the country's only tram system – the
Jerusalem Light Rail Jerusalem Light Rail ( he, הרכבת הקלה בירושלים, ''HaRakevet HaKala Birushalayim'', ar, قطار القدس الخفيف, ''Qiṭār Al-Quds Al-Khafīf'') is a light rail system in Jerusalem. Currently, the Red Line is the o ...
, while a second system, the
Tel Aviv Light Rail Dankal ( he, דנקל‎, commonly known as the Tel Aviv Light Rail) is a planned mass transit system for the Tel Aviv metropolitan area in central Israel. The system will include different modes of mass transit, including rapid transit (metro), ...
is under construction.
Haifa Haifa ( he, חֵיפָה ' ; ar, حَيْفَا ') is the third-largest city in Israel—after Jerusalem and Tel Aviv—with a population of in . The city of Haifa forms part of the Haifa metropolitan area, the third-most populous metropol ...
has the country's only subway system – the Carmelit. Israel has tapped conventional water resources, but relies heavily on reclaimed water treated in the 120 wastewater treatment plants across the country, and desalinated seawater. 57% of water in Israel is for agriculture, 36% for domestic and public use, and 7% for industrial use. Average domestic water consumption in Israel is 250 liters per person per day, which is higher than in most of Europe, but lower than the United States. According to the Ministry of Environment, 97.9% of all tests of water complied with drinking water standards. Israel also has a modern sanitation system, particularly in major Jewish cities and towns. An estimated 500,000 homes in Israel are not linked to a sewage system, the vast majority of them Arab homes, where waste is expelled into cesspits or the environment.


Urban life

Israel is a highly
urbanized ''Urbanized'' is a documentary film directed by Gary Hustwit and released on 26 October 2011. It is considered the third of a three-part series on design known as the Design Trilogy; the first being ''Helvetica'', about the typeface, and the seco ...
nation, with 92 percent of its population living in urban areas. To be granted
city status City status is a symbolic and legal designation given by a national or subnational government. A municipality may receive city status because it already has the qualities of a city, or because it has some special purpose. Historically, city status ...
, a municipality must have a population of at least 20,000. There are currently 78 cities in Israel, and 14 of them have populations over 100,000. Other urban municipalities are towns. Towns in Israel are given local council status if they have a population over 2,000. In urban areas, most residential areas are separated from industrial and commercial zones, and there are also numerous, well-tended parks and playgrounds within the city or town limits.Looking at Israel- Urban and Rural Life
– Israeli Foreign Ministry (2 December 2007)


Rural life

Israelis who live in rural areas primarily live on kibbutzim or moshavim. A kibbutz is a collective community, where the residents work for the benefit of the community. Although many kibbutzim have been privatized, residents typically live communally. Kibbutzim are for the most part self-sufficient, and have their own schools. Most kibbutzim are agricultural, though some have switched to industry. A moshav is also a collective community, but the land is divided among the residents, who each receive an equal amount, and must grow their own produce. The community is supported by a collective tax, which is equal for all the residents, thus leaving good farmers better off than bad ones. A
moshava A moshava ( he, מושבה, plural: ''moshavot'' , lit. ''colony'') was a form of rural Jewish settlement in Ottoman Palestine, established by the members of the Old Yishuv since late 1870s and during the first two waves of Jewish Zionist im ...
is another type of rural agricultural community in Israel, but unlike kibbutzim or moshavim, all the land is privately owned. A
moshav shitufi A moshav shitufi ( he, מושב שיתופי, lit. ''collective moshav'', pl. ''moshavim shitufiim'') is a type of cooperative Israeli village, whose organizational principles place it between the kibbutz and the moshav on the scale of cooperation ...
is another type of cooperative village in Israel, where all production and services are handled collectively, while consumption decisions remain the responsibilities of individual households. Communal settlements are rural or exurban towns where the entire population is organized in a
cooperative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-contro ...
, and can veto the sale of any home or property to an undesirable buyer, typically work outside the town, and must pay only a small property tax to sustain the town and its public facilities. Most homes are
single-family home A stand-alone house (also called a single-detached dwelling, detached residence or detached house) is a free-standing residential building. It is sometimes referred to as a single-family home, as opposed to a multi-family residential dwelli ...
s, although some have apartments. Due to the rigorous selection process when selling property, most residents of a communal settlement share a single shared ideology, religious perspective, desired lifestyle, and some will only accept young couples with children.


See also

* Economy of Israel *
Human Development Index The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, wh ...
*
Poverty threshold The poverty threshold, poverty limit, poverty line or breadline is the minimum level of income deemed adequate in a particular country. The poverty line is usually calculated by estimating the total cost of one year's worth of necessities for t ...


Further reading

* Nitsa (Kaliner) Kasir and Dmitri Romanov, 2018.
Quality of Life Among Israel’s Population Groups – Comparative study
. The Haredi Institute for Public Affairs.


References

{{DEFAULTSORT:Standard of Living in Israel Economy of Israel
Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...