Israel inequality-karnet-flug
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
Uploaded on

Some of the Slide share presentations were ceated by others. The are all with looking at and studying. I am also Stephen Darori on Linkedin. If you think we may have some Synergy Now or maybe in......

Some of the Slide share presentations were ceated by others. The are all with looking at and studying. I am also Stephen Darori on Linkedin. If you think we may have some Synergy Now or maybe in the Future, then do send me an Invitation to Connect and then follow it up with an inmail. 3XC Global Partners Group of which I am Managing Partner is always looking for Outsourced Service Providers , all over the world.. As a Linkedin Open Networker, I will never , "iDK- I don't know" an Invitation

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
300
On Slideshare
300
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Inequality in Israel The Taub Center Karnit Flug, Incoming Governor Bank of Israel October 30, 2013 1
  • 2. Gini coefficients of disposable income inequality (Mid 1980s and late 2000s) 2008 1985 Source: “Divided we stand: why inequality keeps rising”, OECD (2011). 2
  • 3. Inequality in Israel Gini Index (1997-2011) 0.54 0.52 0.50 0.48 0.46 0.44 0.42 0.40 0.38 0.36 0.34 Market income Source: Bank of Israel. Disposable income 3
  • 4. Income inequality between and within population groups (Theil coefficient) 1997 0.019 0.029 0.034 0.015 Within 0.296 0.283 0.26 -0.036 0.315 0.312 0.295 -0.020 Between 0.016 0.026 0.03 0.014 Within 0.206 0.208 0.204 -0.002 Total Source: Bank of Israel. Change from 1997-2011 Total Disposable income 2011 Between Market income 2004 0.222 0.234 0.234 0.012 4
  • 5. Unemployment rate (15+) and real wage per employee post % (Quarterly, 2000-2013) 16 14 12 NIS 9,500 GDP Growth Rate (left scale) Unemployment Rate (left scale) Real Wage per Employee (right scale) 9,000 10 8 8,500 6 4 2 8,000 0 -2 7,500 -4 -6 Source: Based on Central Bureau of Statistics. 7,000 5
  • 6. Percentage households with two or more wage earners (2000-2011) 45% 44% 43% 41% 40% 39% 38% 36% 35% Source: Bank of Israel. 6
  • 7. Summary • Inequality in disposable income distribution rose until 2006 before stabilizing at a very high level. • Inequality in distribution of market income is high, but has been falling since 2002. • Most inequality comes from within groups. • Most of the increase in inequality comes from the increase in inequality between groups. • The labor market in Israel is very flexible (high & rising participation rates, low unemployment, wages are responsive to the business cycle). • There is a clear trade-off between labor market flexibility and disposable-income inequality. • The reductions in transfers and in direct taxes over the years contributed to both. 7
  • 8. Questions:  Are we at the right balance between labor market flexibility and the level of inequality?  Are there policies that can contribute to reducing inequality while maintaining labor market flexibility? 8
  • 9. Thank you 9
  • 10. Proportion of income from work out of total household income (2000-2011) 84.0% 83.5% 83.0% 82.5% 82.0% 81.5% 81.0% 80.5% 80.0% Source: Bank of Israel 10
  • 11. Real income from work in households with two or more wage earners NIS (2000-2011) 22,000 21,500 21,000 20,500 20,000 19,500 19,000 18,500 18,000 Source: Bank of Israel 11