The Gini Coefficient: Gini Declined, But Inequality Remains Very High.
One figure summarizes the data presented in the preceding pages--the Gini coefficient. The OECD publishes Gini data based on the disposable income of households. This number reflects the degree of inequality in countries on a scale between 0 and 1: Zero represents a state in which income divides up equally among all households, while 1 reflects a state in which all the disposable income of a country is concentrated in one household. The closer the index to 1, the greater the inequality.
Prime Minister Benjamin Netanyahu recently boasted that the Gini coefficient of Israel declined over the past two years. While this is true, Israel remains distant from the lower inequality rates of western Europe. In 2015, the most recent year for which the OECD published comparative figures that included Israel, Israel's Gini score (for household disposable income) was 0.360, ranking Israel uncomfortably near the top of the inequality list.
The National Insurance Institute published a Gini coefficient of 0.359 for 2016. This represents a decrease of 1.8% compared to 2015, and is the lowest in two decades. (38)
Inequality in OECD Countries, 2015 Gini coefficient, household disposable income after direct taxes and transfer payments (1) (*)Iceland 0.246 Slovenia 0.250 Slovakia 0.251 (*)Denmark 0.256 Czech Republic 0.258 Finland 0.260 Belgium 0.268 Norway 0.272 Australia 0.276 Sweden 0.278 (*)Hungary 0.288 (*)Germany 0.289 Poland 0.292 France 0.295 South Korea 0.295 Switzerland 0.297 (*)Ireland 0.298 Netherlands 0.303 Canada 0.318 (*)OECD 0.318 (*)Italy 0.326 Estonia 0.330 Portugal 0.336 (*)Austria 0.337 Greece 0.340 Spain 0.345 Latvia 0.346 (*) New Zealand 0.349 Britain 0.360 Israel 0.360 Lithuania 0.372 United States 0.390 Turkey 0.404 Chile 0.454 (*) Mexico 0.459 (1) (*) data from 2014. Sources: OECD. 2017. Income Inequality (indicator), doi: 10.1787 /459aa7f1-en (accessed on 5 September 2017). OECD average from OECD Income Distribution Database (IDD): Gini, poverty, income, Methods and Concepts. Note: Table made from bar graph.
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|Publication:||Israel: A Social Report|
|Date:||Jan 1, 2018|
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