The average income of the top 5% of Israelis is $1.6 million a year. This is more than double the national average of $9,700 (a rise from $3,100 in 1994). The top 1% earns an average of $2.8 million a year, while the bottom 70%, who make at least $1.5 million each year, earn barely $700. Most Israelis are in a middle income bracket, earning between $1.5 and $4 million a year. These rates are much higher for women and those who identify abroad (e.g., Indians or Indians living in Israel). These pay gaps may have some theoretical basis: In 2011, fewer than 10% of Israelis lived on less than NIS 1 million per year. But in reality, there are many important factors that have led to these differences (e.g., language and social context). In this series we explore the pay gap among Israeli citizens, local job market characteristics and compulsory pension benefits for ex-employees: What’s the deal?
The Pay Gap
In this section we examine the pay gap between Israelis and the rest of the world. We start with the most obvious comparison: the amount of money that each country’s average income tax payee makes — those who make below $1 million in a year. Then we examine the pay gap by income category, with highest earners making the most of the extra income they enjoy with the most costly lifestyle choices. Finally, we look at how the pay gap relates to other factors such as education and occupational qualifications. The average income of the top 5% of Israelis is three times that of the top 10% of the global income distribution. Where do they come from? The top 1% of Israelis earn more than double the incomes of their fellow citizens on other Western countries. These are people who choose to live in the country and enjoy high levels of financial autonomy. The top 10% of the global income distribution makes an average of $3.1 million per year. The top 5% of Israelis make $1.6 million. Moreover, the average income of the top 0.1% of the global income distribution is $0.9 million per year. These figures are significant on their own but when put in context, the pay gap is worth exploring in greater detail.
How much do Israelis make?
The average income of the top 5% of Israeli households is $1.6 million, compared to $3.4 million for the top 10% of the global income distribution. How much do Israelis make? According to statistics, the top 5% of Israeli households make a significant amount of money — around $1 million. But there are many factors that could be causing the pay difference, including education, chosen lifestyle, employment, and taxes paid.
The Top 5% of Israeli Earnings
The top 5% of Israeli earnings are made up of salaries, bonuses, and taxable income, which is why the top 5% of earnings often make the most of the pay gap. The income of the top 5% of Israelis is spread among three different categories: regular income, gross income, and exemptions and deductions.
Pay equity in the workplace: A look at statistics
Pay equity in the workplace is the ability of employees to receive more pay than they are owed. On average, employees in the top 5% of companies earn $1,657 more than their peers in the bottom 90%. Other important factors that may have an effect include legal and regulatory issues, employee satisfaction, and whether or not an employee is a member of a company staff.
The average income of the top 5% of Israelis is $1.6 million, more than double that of the bottom 90%. The top 5% of earners in this group enjoy the best lifestyle choices, making them the most likely to choose a high-cost profession or take major risks. In these cases, the pay gap may be a result of deliberate discrimination. There is no perfect solution to the pay gap and researchers should keep these factors in mind as they analyze their data. The pay gap between Israelis and the rest of the world is an important issue that needs attention. The average income of the top 5% of Israelis is three times that of the top 10% of the global income distribution. This is a significant difference, particularly when one looks at the cost of living in the country and the quality of living in other regions of the world. Still, the pay gap is not the total story. There are other important factors that may have an impact on the pay gap, including education, employment, disabilities, and occupational qualifications. These should also be factored into the pay gap analysis.