{"id":49276,"date":"2018-07-19T08:18:27","date_gmt":"2018-07-19T08:18:27","guid":{"rendered":"http:\/\/taubcenter.secure2.anova-host.com\/whats-the-story-of-the-gap-between-israels-highest-and-lowest-earners\/"},"modified":"2020-12-27T08:19:05","modified_gmt":"2020-12-27T08:19:05","slug":"whats-the-story-of-the-gap-between-israels-highest-and-lowest-earners","status":"publish","type":"post","link":"https:\/\/www.taubcenter.org.il\/en\/whats-the-story-of-the-gap-between-israels-highest-and-lowest-earners\/","title":{"rendered":"What\u2019s the story of the gap between Israel\u2019s highest and lowest earners?"},"content":{"rendered":"<p>The recently published <span style=\"color: #000080;\">\u201c<a style=\"color: #000080;\" href=\"https:\/\/read.oecd-ilibrary.org\/employment\/oecd-employment-outlook-2018_empl_outlook-2018-en#page1\">OECD Employment Outlook 2018<\/a>\u201d<\/span> has caused a splash in the Israeli media with its important findings related to unemployment, the gender wage gap, and also the wage gaps between the Israelis who earn the most (wages in the 90<sup>th<\/sup> percentile) and those who earn the least (wages in the 10<sup>th<\/sup> percentile).<\/p>\n<p>The OECD report finds that workers in Israel who earn wages in the 90<sup>th<\/sup> percentile earn more than 7 times as much as workers in the 10<sup>th<\/sup> percentile. This is a larger gap than the average in other developed countries, where the highest earners make a little under 3.5 times as much as the lowest earners. In fact, the gap in Israel is the highest among all OECD countries.<\/p>\n<p>Already in 2014, researchers at the Taub Center <span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/www.taubcenter.org.il\/the-singer-series-state-of-the-nation-report-2014\/labor-income-inequality-trends-in-israel\">examined wage disparities<\/a><\/span> in Israel over the previous decade and expressed concern about the future. Income inequality in Israel had been steadily decreasing between the late 1990s and 2011. Nonetheless, the gap in 2011 remained among the highest in the OECD countries at the time, with those in the 90th percentile earning 4.9 times more than those in the 10<sup>th<\/sup> percentile (well under the 7.2 ratio of today). Despite the consistent decline, the researchers warned that certain trends would likely lead to growing income disparities in the future.<br \/>\n<img loading=\"lazy\" class=\"alignleft wp-image-42842 size-full\" src=\"https:\/\/www.taubcenter.org.il\/wp-content\/uploads\/eng1-9.png\" alt=\"eng1\" width=\"1046\" height=\"811\" \/><\/p>\n<p>Essentially, the researchers explained that, due to automation (replacement of manual repetitive jobs by machines and robots) in the Israeli economy, the middle of the wage distribution was eroding and the two ends of the spectrum seemed likely to move farther apart.<\/p>\n<p>And, they were right. Since 2013 the gap between the Israelis who earn the most and those who earn the least has been growing \u2013 and to such a degree that it is now even higher than it was back in the late 90s.<\/p>\n<p>According to Shraberman, who published <span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/www.taubcenter.org.il\/trends-in-the-labor-market\/\">a follow-up report<\/a><\/span> with Claude Berrebi in 2017, the demand for high-skilled workers in Israel\u2019s labor market has increased greatly, driving up the wages of those at the high end of the wage distribution. Increases at the high-wage end of the spectrum outweigh changes that have taken place in the lower and middle parts of the distribution. Thus, even with government policy intervening to improve the condition of low-wage workers by raising the minimum wage, the gap between Israel\u2019s highest and lowest earners is continuing to widen \u2013 and at an alarming pace.<br \/>\n<img loading=\"lazy\" class=\"alignright size-full wp-image-42844\" src=\"https:\/\/www.taubcenter.org.il\/wp-content\/uploads\/eng2-11.png\" alt=\"eng2\" width=\"807\" height=\"602\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"The recently published \u201cOECD Employment Outlook 2018\u201d has caused a splash in the Israeli media with its important findings related to unemployment, the gender wage gap, and also the wage gaps between the Israelis who earn the most&#8230;","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[493,2],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What\u2019s the story of the gap between Israel\u2019s highest and lowest earners? 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