UNCLASSIFIED STUDY ON THE GEOGRAPHIC COVERAGE OF ISRAELI DATA Statistics Directorate Organisation for Economic Co-operation and Development UNCLASSIFIED TABLE OF CONTENTS EXECUTIVE SUMMARY AND MAIN FINDINGS .................................................................................... 5 Note from the Secretariat ............................................................................................................................. 5 Background .................................................................................................................................................. 5 Compliance with international standards ..................................................................................................... 5 Macroeconomic statistics ......................................................................................................................... 5 Population statistics .................................................................................................................................. 6 Geographic structure and scope of Israeli statistics ..................................................................................... 7 Treatment of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank in the geographic hierarchy ................................................................................................................................ 7 Documentation on geographic and population group scope by subject domain ...................................... 7 Nationality vs. residence: Documentation on population group scope .................................................... 8 Basic demographic characteristics of areas ................................................................................................. 8 Socio-economic data and impact of post-1967 areas on aggregates ............................................................ 9 Labour force survey and data ................................................................................................................... 9 Integrated income survey and data ........................................................................................................... 9 Macroeconomic data and impact of post-1967 areas on aggregates .......................................................... 10 CHAPTER 1: BACKGROUND AND MODUS OPERANDI ..................................................................... 11 Background ............................................................................................................................................ 11 Conducting the Study: The Approach Followed .................................................................................... 11 A note on terminology and data ............................................................................................................. 12 Contents of the Report ............................................................................................................................ 13 CHAPTER 2: COMPLIANCE OF ISRAELI STATISTICS WITH INTERNATIONAL STANDARDS AND GUIDELINES ...................................................................................................................................... 14 A. Relevant International Statistical Standards and the Statistical Territory ......................................... 14 B. Guidelines for Macroeconomic Statistics .......................................................................................... 14 Concepts of institutional unit, residence, economic territory and total economy from SNA93 ............. 15 Guidelines on establishments ................................................................................................................. 16 C. Guidelines for Population Statistics ................................................................................................... 16 CHAPTER 3- GEOGRAPHIC STRUCTURE AND SCOPE OF ISRAELI STATISTICS ......................... 19 Sources of information on the scope of Israeli official statistics ............................................................ 19 2 UNCLASSIFIED Fundamental Description of the Geographic Extent of Israel or the State of Israel ............................... 19 The geographic structure for Israeli official statistics ............................................................................ 20 Treatment of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank in the geographic hierarchy .............................................................................................................................. 22 Documentation on geographic scope by subject domain ....................................................................... 22 Nationality vs. residence: Documentation on population group scope .................................................. 23 CHAPTER 4: THE BASIC DEMOGRAPHIC CHARACTERISTICS OF ISRAELI AREAS ................... 24 Background ............................................................................................................................................ 24 Basic demographic characteristics ......................................................................................................... 25 Commuting relationships between areas ................................................................................................ 28 CHAPTER 5: PRESENTATION AND ANALYSIS OF SOCIO-ECONOMIC DATA AND IMPACT OF POST-1967 AREAS ON AGGREGATES.................................................................................................... 29 Introduction ................................................................................................................................................ 29 Labour Market Data ................................................................................................................................... 29 a. The Israeli Labour Force Survey (LFS) instrument. .......................................................................... 30 Sampling method ................................................................................................................................ 30 Estimation and weighting scheme ...................................................................................................... 31 b. Coverage............................................................................................................................................. 31 Special geocoding and tabulation of data for post-1967 areas and the regions of pre-1967 Israel..... 32 Comparing LFS and Census “Populations” ........................................................................................ 32 c. Comparison and impact of employment, labour force and unemployment rates for Israeli regions .. 33 Labour force status indicators for Israeli regions ................................................................................... 33 International Comparison of labour force rates .................................................................................. 34 Impact of including post-1967 areas on labour market outcomes ...................................................... 35 Income distribution and poverty data......................................................................................................... 39 a. Survey instrument ............................................................................................................................... 39 b. Coverage............................................................................................................................................. 40 c. Comparison and impact of income distribution and poverty measures for Israeli areas .................... 40 Income inequality in Israel and other OECD countries ...................................................................... 41 Poverty rates in Israel and other OECD countries .............................................................................. 42 CHAPTER 6: PRESENTATION AND ANALYSIS OF MACRO-ECONOMIC DATA AND IMPACT OF POST -1967 AREAS ON AGGREGATES................................................................................................... 45 Introduction ............................................................................................................................................ 45 The rationale: a top down approach ....................................................................................................... 45 National accounts aggregates included in the Study .............................................................................. 45 Limitations of underlying source data .................................................................................................... 48 3 UNCLASSIFIED Overview of the surveys used for the allocation of national accounts by geographic area .................... 49 Key national accounts aggregates for Israel by geographic area ............................................................... 50 Output by Industry: Gross Value Added by Industry ............................................................................. 50 GDP by Expenditure: General Government, Private Consumption and Fixed Capital Formation ........ 53 General government expenditure ........................................................................................................ 53 Private consumption expenditure by type ..........................................................................................