An OECD report indicates about 21% of Israelis are under the poverty line – more than in countries such as Mexico, Turkey, and Chile.
A new report by the Organization for Economic Cooperation and Development (OECD) ranks Israel as the country with the highest rates of poverty among its members.
According to the report, about 21 percent of Israelis are living under the poverty line – more than in countries such as Mexico, Turkey, and Chile. In the mid-1990s, Israel’s poverty rate stood at just 14 percent.
The United States is in fourth place, with about 17 percent of its population under the poverty line. The lowest rates were recorded in the Czech Republic and Denmark – about six percent. The OECD average is a poverty rate of 11 percent.
Israel is also ranked high as far as its pay gap is concerned – third place, behind only the US and Mexico. According to the study, the pay gap has increased in most OECD countries since the 1980s. About 25 years ago, the top 10 percent had incomes seven times higher than the bottom ten percent. By 2010, the gap had risen, bringing the top’s salaries to 9.5 times the bottom’s.
Particularly high inequality rates were recorded in countries such as Chile, Israel, Mexico, Turkey, and the United States. Low rates were recorded in countries such as Denmark, Norway, Slovakia, and Slovenia. The study claims to indicate an economic phenomenon, which consists of a smaller and smaller group enjoying a larger and larger cut of the benefits that come from economic growth.
Another unflattering statistic for Israel is its income inequality between men and women. The report indicates that men in Israel make, on average, 22 percent more than women, which places Israel fourth among OECD member states, behind Japan, Estonia, and South Korea. New Zealand is the most equal OECD nation under these criteria, with a six percent pay gap. The OECD average stands at 15 percent.
As reported by Ynetnews