Israeli Social Report Reveals Stark Income Gaps and Surprising Ethnic Earnings Shift
The Adva Center's 2026 Social Snapshot report highlights severe income inequality in Israel, showing that households in the top income decile earn 13 times more than those in the bottom decile. In 2023, the average gross monthly income for households headed by salaried workers in the top decile was 85,218 shekels, compared to just 6,278 shekels in the lowest decile. The top two deciles account for 45% of salaried household incomes, with the top decile alone holding 28%. Wealth concentration is even more pronounced, as 82% of household income from capital is in the top decile, and 58% within the top half.
The report also reveals that nearly a quarter (23.4%) of salaried workers earn low wages, defined as less than two-thirds of the median wage, nearly double the average in developed countries. Israel ranks second highest among developed nations for the proportion of low-wage earners and fourth from the bottom in the size of its middle class, which comprises only 54.4% of households compared to a 62% average in developed countries. The middle class in Israel also faces high living costs, with the OECD ranking Israel second in price levels among its member states.
A notable finding is a reversal in income trends between second-generation Mizrahi and Ashkenazi Israelis. In 2023, second-generation Mizrahi men earned on average 22,384 shekels monthly, 8% more than their Ashkenazi counterparts at 20,803 shekels. Among women, second-generation Mizrahi women earned 12,978 shekels, 15% more than Ashkenazi women. This contrasts with 2022 data, where Ashkenazi men and women earned more. The shift may be linked to the Central Bureau of Statistics' 2023 change from survey-based to administrative income data.
The report's authors, including Eti Konor-Atias, Noga Dagan-Buzaglo, Miri Endbeld-Sabag, and Shani Bar-On Maman, warn that addressing inequality is urgent, especially given Israel's ongoing security challenges. They emphasize that inequality shapes the depth of societal harm and recovery capacity, describing Israel as facing a deep civic crisis.
