Israel's Top Earners Make 7 Times More Than Lowest Income Bracket
Translated & summarized from Davar by baba
Israel's top income earners make approximately 49,496 shekels per month, seven times more than the lowest income bracket, according to a 2024 Central Bureau of Statistics survey. The average household spent 18,695 shekels monthly, with housing being the largest expense. Income inequality decreased slightly, but significant disparities remain in spending, housing, and asset ownership. The top decile's income allows for substantial savings and capital gains, further widening the wealth gap.
The story in 6 lines · by baba
- Israel's top income decile earns 49,496 shekels monthly, seven times more than the bottom decile.
- Average Israeli household spending was 18,695 shekels in 2024, impacted by the ongoing war.
- Income inequality decreased in 2024, with the Gini coefficient falling to 0.333.
- The top income decile holds 22.4% of total income, while the bottom holds only 2.8%.
- The bottom income decile spends 63% more than it earns monthly.
- Significant disparities exist in housing, car ownership, and possession of appliances between income groups.
The average Israeli household spent 18,695 shekels per month in 2024, according to a new survey by the Central Bureau of Statistics. This figure was significantly impacted by the war that began on October 7 and continued throughout the year. Despite economic challenges, the real income saw a 0.3% increase compared to 2023. Housing accounted for 25% of average household spending, followed by transportation and communication at 18.4%, and food at 17.9%.
The survey also revealed a decrease in income inequality, with the Gini coefficient dropping from 0.349 to 0.333. However, significant disparities persist. The top income decile holds 22.4% of total income, while the bottom decile holds only 2.8%. Households in the top decile earn nearly 2.3 times their expenses, whereas the two lowest deciles spend more than they earn. The bottom decile spends an average of 63% more than its income monthly.
Living conditions also reflect this divide. In the bottom income decile, 56.5% live in rented housing, compared to 32.7% nationally and 18.3% in the top decile. Rent in the top decile is 2.3 times higher than in the bottom decile. Among homeowners, the bottom decile has 1.5 people per room, versus 0.6 people per room in the top decile, a 2.5-fold difference in density.
Ownership of goods also highlights the gap. Dishwashers are owned by 78.3% of top-decile households, compared to 16.9% in the bottom decile. At least one car is owned by 89.6% of the top decile, versus 46.2% of the bottom decile. Furthermore, 50.7% of the top decile own at least two cars, compared to just 4.6% of the bottom decile.
The top income decile earns seven times more than the bottom decile, yet their expenses are less than double, partly due to essential costs like housing, healthcare, and food being inflexible. The ability of top-decile households to direct most of their income towards savings allows for additional income streams from capital, where disparities are even more pronounced. Among those reporting income from capital, 47% went to the top percentile, and only 3% to the bottom half.
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