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Proportion of persons earning less than the minimum wage increased: proportion of persons earning more than the average wage decreased.

In the previous pages, we examined the income gaps among households. This page looks at wage gaps among individuals--which contribute, of course, to wage gaps among households.

The National Insurance Institute publishes figures on the proportion of salaried persons earning the minimum wage or less, the proportion of salaried persons earning the average wage or less, and the proportion of persons earning more than the average wage.

During the last decade, the proportion of persons receiving more than the average wage decreased, while the proportion of persons receiving the minimum wage or less increased.

In 1998, 28.8% of salaried persons received the minimum wage or less, compared to 35.1% in 2006.

In contrast, in 1998, 29.7% of salaried persons received more than the average wage, compared to 26.1% in 2006. At the same time, the proportion of persons earning the average wage or less rose from 70.3% in 1998 to 73.8% in 2006.

Wages of Salaried Persons in
Israel, Measured Against the
Average Wage
1998-2006
In percentages, monthly averages

Salaried persons earning   1998   1999   2000   2001   2002   2003

Minimum wage or less       28.8   29.5   29.1   29.2   31.7   35.4

Between the minimun wage    9.8    9.3   11.7   10.0    7.6    5.8
and 50% of the average
wage

Between 75% of the         11.9   12.0   11.5   12.1   12.3   11.5
average wage and the
average wage

Total salaried persons     70.3   70.9   72.2   71.6   71.9   73.0
earning average wage
or less

Between the average wage   19.6   18.9   18.1   19.0   18.8   17.7
and double the average
wage

More than double the       10.1   10.3    9.7    9.6    9.3    9.3
average wage

Salaried persons earning   2004   2005   2006

Minimum wage or less       34.1   32.7   35.1

Between the minimun wage    6.4    8.2    5.0
and 50% of the average
wage

Between 75% of the         12.2   12.0   12.4
average wage and the
average wage

Total salaried persons     72.9   73.3   73.8
earning average wage
or less

Between the average wage   18.3   17.7   17.7
and double the average
wage

More than double the        8.7    8.9    8.4
average wage

Note: In 2006 the average wage of salaried persons was NIS 7,607.

Sources: Adva Center analysis of National Insurance Institute, Average
Wages by Selected Economic Variables, Jacques Bendalak, various years;
the figure for 2006 courtesy of the Research Department of the National
Insurance Institute.
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Title Annotation:Israel: A Social Report 1998-2007
Publication:Israel: A Social Report
Article Type:Report
Geographic Code:7ISRA
Date:Dec 1, 2008
Words:437
Previous Article:Households in the top income brackets increased their slices of the total income pie.
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