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Israel: a Social Report 2015

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Israel: a Social Report 2015 مركزأدفا ISRAEL: A SOCIAL REPORT 2015 Dr. Shlomo Swirski | Etty Konor-Attias | Rotem Zelingher | December 2015 2 Israel: A Social Report 2015 3 ALL QUIET ON THE SOCIO-ECONOMIC FRONT مركزأدفا The median wage has not changed hands of individuals in the top activity in order to make space for for over a decade. The proportion of income decile and especially in the the business sector. While in the Israeli workers earning low wages hands of persons in the top one decades immediately following Adva Center This report was produced thanks to a grant from – 22.1% (2013) – is among the percent. establishment of the state of Israel P.O. Box 6136401 highest among OECD countries (low the state was the primary social and MAZON: A Jewish Response to Hunger While wealth keeps growing, the Telephone: 972-3-5608871 wages = 2/3 of the median wage). economic actor, leading economic poverty rate – 18.8% of Israeli Fax: 972-3-5602205 One-third of Israeli workers earn no development, employment, families – remains high and is The Adva Center is supported by more than the minimum wage. At immigrant absorption, housing and www.adva.org among the highest among OECD The New Israel Fund the same time, the average monthly education, in recent decades it has [email protected] countries. CORDAID salary bill of the directors-general of endeavored to reduce its actions Dafna Fund Israel's largest corporations was in Very few economic sectors pay good and cut its budgets. The result is Friedrich Ebert Stiftung 2014 more than NIS 400,000. salaries: hi tech, financial services, the shrinking of the social services Board of Directors self-employed persons who provide that it provides. State expenditure The above figures are a good Professor Yossi Dahan, Chair Hadassah Foundation corporate services. Employment in 2014 amounted to 41.2% of GDP, reflection of the way the national Ms. Gilberte Finkel (M.A.), Treasurer Israel Delegation of the European Commission in these sectors of the economy lower than that of most western income divides up: between 2004 Professor Ismael Abusaad Jacob & Hilda Blaustein Foundation requires college degrees, but only European countries and below the and 2014, the share of employers Dr. Nitza Berkovitch half of young people in Israel pass OECD average. Jewish Women's Foundation of Metropolitan grew from 14% to 17%, while the Professor Oren Yiftachel the high school matriculation exams Chicago/United Israel Appeal share of workers declined from 61% Not only that: the agenda of Professor (Emeritus) Hubert Law-Yone that are a prerequisite for college Kathryn Ames Foundation to 57%. successive Israeli governments Professor Riki Savaiya admission and only about 30% has been set first and foremost by Professor Dani Filc Rosa Luxemburg Foundation Wealth is on the rise: in 2014, the of youngsters who were 17 years the Palestinian conflict, and no Professor Rachel Kalush Tikkun Olam Women's Foundation financial assets 'held by the public" old in 2006 enrolled in academic political solution appears to be on Professor Uri Ram Women's Amutot of Greater Miami Jewish amounted to NIS 3,259 billion – 2.2 institutions by 2014. the horizon. Israeli governments are Federation/United Israel Appeal times more than in 2000. There are These figures call out to the not disposed to develop long-range Audit Committee no figures on how this amount is Zabar Family Foundation government to become active and programs for improving educational Ms. Ruti Gur distributed among different income involved. The government itself is a achievements, increasing the Ms. Hanna Langer brackets, but there is no doubt that major employer and it is responsible student population or broadening the expression held by the "public" for the school and higher education the limits of Israel's "start-up nation" Staff is inaccurate: from what we know systems. However, the opposite is beyond the borders of "the state of Ms. Barbara Swirski, Executive Director from other countries, it is reasonable what is happening: the state has Tel Aviv." Dr. Shlomo Swirski, Academic Director to assume that the lion's share of been restraining its own economic Ms. Etty Konor-Attias, Research Coordinator those assets is to be found in the Attorney Noga Dagan-Buzaglo, Researcher Ms. Yael Hasson, Researcher Ms. Valeria Seigelshifer, Advocacy Expert Ms. Shira Pinhas and Ms Maytal Shtrul, Community Action Workers Mr. Yaron Dishon, Researcher and Outreach Coordinator Ms. Rotem Zelingher, Economist Ms. Mira Oppenheim, Office Manager and Press Liaison Mr. Roi Maor, Financial Advisor Ms. Efrat Ya'ari, Partnerships and Resource Developer 4 Israel: A Social Report 2015 5 ECONOMIC GROWTH IS NOT THE PANACEA Economic Growth in Israel and in OECD Countries, 2000-2014 and Forecast for 2015 and 2016 The common response of state have been 8 violent confrontations in GDP grew by an average of 3.3% leaders to the figures presented here the Gaza Strip. The direct economic annually, compared with 1.6% is that what is needed is more and loss due to each confrontation was for OECD countries on average.1 It 10.0% more economic growth. limited, but their accumulated effect might have been expected that this on certain population groups and in phenomenon would improve the Firstly, economic growth has 8.0% particular geographic areas has been economic situation of the majority of not been stable, due not only to debilitating and has contributed to a Israelis. global economic crises like that of general atmosphere of instability. 6.0% Israel 2008, but also to frequent violent However as we mentioned above, confrontations with the Palestinians. Secondly, of and by itself, economic the median wage – defined as The graph on the next page shows growth is no assurance that the fruits the wage in the middle – with half 4.0% that while other countries were of growth will be divided equitably. of Israelis earning more and half adversely affected by the worldwide earning less, has not changed. Since the end of the second financial crisis, Israel's economy was 2.0% Average intifadah, the Israeli economy has To assure an equitable division of adversely affected in addition by of OECD demonstrated higher economic the fruits of economic growth, one the second intifadah. Not only that: countries growth than European countries: needs appropriate social policies. 0.0% since the second intifadah, there between 2000 and 2014, Israel's -2.0% -4.0% -6.0% Forecast 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Israel 8.9 0.2 -0.1 1.2 5.1 4.4 5.8 6.1 3.1 1.3 5.5 5.0 2.9 3.3 2.6 2.5 3.3 OECD 4.0 1.4 1.6 2.1 3.2 2.6 3.0 2.6 0.2 -3.6 2.9 1.7 1.2 1.4 1.7 -- -- Median Income for a Salaried Employee, 2003-2004 In NIS, current prices for 2014 New Series Forecast 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Median Income -- -- -- 6,263 6,385 6,272 6,451 6,809 6,576 6,486 6,468 6,380 6,398 6,604 6,707 -- -- In NIS Sources: Adva Center analysis of CBS Income and Expenditures Survey database, various years; CBS, Statistical Abstract of Israel, various years; CBS, press release "Early Estimates of the National Accounts for 2015" (Hebrew), October 18, 2014; Bank of Israel, "Macro-Economic Forecast of the Research Department" (Hebrew), September 24, 2015; OECD figures based on www.data.worldbank.org growth was accompanied by growth by accompanied was growth 1968and1988,economic between Institute, Insurance the National by published figures to According thirty years. some for economic theIsraeli of beenafeature has growth and wage growth economic between The gap GROWTH GROWTH DIVERGED WAGE ECONOMIC FROM 6 December 2014. Figures for 2013-2014 courtesy General Research Department, Research and Planning Administration, National Insurance Institute. Insurance National Administration, andPlanning Department, Research Research General 2013-2014courtesy for 2014. Figures December Sources: 1.00 1.50 2.00 2.50 3.00 3.50 1968-2014 Wages, andReal Growth Economic Capita Per Miri Endeweld and Oren Heller, Heller, andOren MiriEndeweld 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 Wages, the Minimum Wage and Their Contribution to Reducing Poverty: Israel in International Comparison, inInternational Israel Poverty: Reducing to Their Contribution and Wage theMinimum Wages, 1978 1979 1980 1981 1982 means This change. didnot salaries 2000onreal from lower, was former inthe therise if even GDP, capita per with concurrently rose salaries 2000, year the andabout 1990s the of thebeginning between while "However, Israelis. of wage andintheaverage salaries in real 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 trickle upinstead. trickle down, trickle to supposed are which growth, economic of thefruits policy, theinterventionsocial of Without places." other to channeled were rather but workers among dispersed average) (on not were growth of thefruits that 1999 positions employee for (average) wages monthly Real 2000 GDP percapita 2001 2002 2003 2 Israel: A Social Report 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source nationals. foreign of andinvestments banks mortgage banks, commercial Note: Between insurance). andlife savings pension securities, deposits, (bank public" the by held assets "financial termed are inwhat in theincrease evidenced is This is. wealth growing, not are inIsrael salaries real While THE ON WEALTH IS RISE In NISbillions,currentpricesfor2014 2000-2014 thePublic, by Held Assets Financial The public: Includes individuals and corporations, households, firms and national institutions. Does not include government, the Bank of Israel, of Bank the government, include not Does institutions.
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