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Income Inequality in Israel: A Distinctive Evolution

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  • Momi Dahan

Abstract

The level of disposable income inequality in Israel has increased noticeably since the mid-1980s and today it is above most developed countries. In contrast, market income inequality, which hit a record level in 2002, has reversed its course since then and has shown a sharp decline in subsequent years, and it is now below the OECD average. This paper offers tentative explanations for the inverted U-shape evolution of market income inequality in Israel in the last 25 years, which is distinctive in view of most developed countries’ experience. In addition, this article addresses the unique combination of income inequality in Israel which has one of the highest levels of disposable income inequality but is ranked below the OECD average measure of market income inequality.

Suggested Citation

  • Momi Dahan, 2017. "Income Inequality in Israel: A Distinctive Evolution," CESifo Working Paper Series 6542, CESifo.
    • Handle: RePEc:ces:ceswps:_6542
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    Cited by:

    1. Tali Larom & Osnat Lifshitz, 2018. "The labor market in Israel, 2000–2016," IZA World of Labor, Institute of Labor Economics (IZA), pages 415-415, January.
    2. Momi Dahan, 2017. "Using Spatial Distribution of Outlets to Estimate Gambling Incidence," CESifo Working Paper Series 6583, CESifo.
    3. Yonatan Berman, 2020. "Inequality, Identity, and the Long-Run Evolution of Political Cleavages in Israel 1949-2019," Working Papers halshs-03022224, HAL.
    4. Momi Dahan, 2022. "The Effects of Intergovernmental Transfers on Municipalities' Budgets," Israel Economic Review, Bank of Israel, vol. 20(1), pages 1-25.

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    More about this item

    Keywords

    income inequality; redistribution policy; labor market institutions; SBTC;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General

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