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The poverty index of «bituach Leumi»: the social gap has grown

The national insurance Institute («bituach Leumi») has published an annual report on poverty, indicating the growth of social gap between rich and poor layers of the population, compared with 2013.

In particular, the share of families living below the poverty line rose from 18.6% to 18.8%, while the share of the population from 21.8% to 22%. The proportion of children living below the poverty line has increased from 30.8% to 31%.

In absolute numbers we are talking about 444.900 families (1.709.300 people, of which 776.500 people – children).

Without taking into account measures of social support (allowances, payments and benefits) the proportion of households living below the poverty line has increased from 28.5% to 29.1%. Of these, 35.5 per cent of the families eventually received sufficient support from the state to go beyond the poverty level.

The index of the depth of poverty (the difference between the income of poor households and the poverty line) grew by 6% and the FGT index (a weighted index that gives greater specific weight to the poorest segments of the population) by 10%, which suggests that the gap between the poorest families and the rest of the population grew substantially.

Accordingly, the Gini coefficient (index of inequality) rose 0.3%, and the Gini coefficient when given free income by 2%.

In 2014 the poverty line for a family of one person was $ 3.077 shekels (NIS 2.990 in 2013), for a family of two people – 4.923 shekel (4.784 shekels in 2013), for a family of three people – 6.522 shekel for a family of four – 7.876 shekels for a family of five people – 9.230 shekels a month for a family of six people – 10.461 shekel a month.

At the time of reporting the degree of religiosity of the representatives of the Jewish sector was first established on the basis of self-determination of respondents, and not based on the last school where he was studying. Eventually it was revealed that the proportion of ultra-Orthodox population in the Israeli population is 9.6% instead of 6.5%. The share of ultra-Orthodox families living below the poverty line is 54.3%, while their share among all households living below the poverty line is 17.5%.

In the Arab sector below the poverty line reside 52.6% of families (an increase of 0.9%).

The proportion living below the poverty line among families consisting of elderly people has increased from 22.1% to 23.1%.

The «Leumi» notes that the measures taken by the government to reduce poverty (raising the minimum wage, higher benefits for older, receiving social allowance, increased child allowances) should be reflected in the report on poverty in 2016.

A detailed review will be published later.




The poverty index of «bituach Leumi»: the social gap has grown 09.12.2015

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