​Summary:

  • Israel had 1.7 million people living below the poverty line in the year ending June 2007. The poverty rate in that period amounted to 24.7 percent of the population, similar to that in the years 2005 and 2006. According to additional indices, which reflect the ability to purchase basic commodities or a fixed basket, the poverty rate has declined in recent years. The poverty rate is especially high in the Arab sector and in the ultra-orthodox Jewish (Haredi) sector. 
  • Despite the stability and even slight improvement in the poverty rate as measured by certain indices, the poverty rates in the population in which not only income but also expenditure were below the poverty line continued to rise, indicating an increase in the proportion of the poor who have difficulty in maintaining a reasonable level of expenditure in the face of temporary reductions in their income. 
  • Due to economic growth and the cuts in transfer payments during recent years, the weak populations have entered the labor market at an increasing rate. However, this trend has not been accompanied to an adequate extent by programs for encouraging employment and for increasing the remuneration for labor. As a result, entry to the labor market has been no guarantee for escaping poverty. 
  • Over half of the ultra-orthodox population is poor. This is because of their low participation rates, relatively low wages, high birthrate, and education that is not directed at future income-earning ability. 
  • During recent years policy-makers have shown a growing tendency to adopt an approach whereby the focus of support for the elderly population should be moved from universal support to selective support, where the most important criterion must be the level of need for assistance. 
  • Since the beginning of the 1990s, a considerable improvement has been achieved in matriculation exam results (excluding adjustment in respect of the exams’ level of difficulty). The growing proportion of the Arab and ultra-orthodox educational streams has moderated the improvement, while the enhancement of the socioeconomic characteristics of the students within each of the educational streams has supported an increased level of achievement. 
  • The gaps between the basic pattern of achievement in the matriculation exams among students from a weak socioeconomic background compared with those of students from a strong background contracted during the period, concurrent with an expansion of the gaps in achievements indicative of excellence. 
  • The complementary insurance plans offered by the health funds contribute to the average level of health in the population and increasing the scope of them reflects in a large growth in private and national expenditure on health. 
  • Seventy-seven percent of the population are covered by complementary health insurance. In the OECD countries excluding Holland and France, this ratio is lower. 


Welfare Policy Issues - Full File