Israel has highest poverty rate in the developed world, OECD report shows

Haaretz reports: Israel is the most impoverished of the 34 economically developed countries, with a poverty rate of 20.9%, according to a report released by the Organization for Economic Cooperation and Development on Wednesday.

Israel’s poor population has grown more than in any other OECD nation, making it the country with the highest rate of poverty, having exceeding Mexico, whose poverty rate stands at 20.4%.

Israel also continues to be one of the countries with the largest income inequalities, ranking fifth, with the U.S., Mexico, Chile and Turkey having larger income gaps. Between 2007 and 2011, Israel experienced almost no changes in its social gaps – which saw a tiny decline of 0.1%. Between 2007 and 2010, poverty among children and young people in Israel grew at the fourth largest rate from among the OECD countries – although among senior citizens, it declined.

As opposed to the trend in most countries, where salaries among both the richest and poorest has decreased, Israel has seen a slight increase in both. In Spain and Greece, which are suffering from recession, poverty rates are lower, at 15.4% and 14.3% respectively. The OECD report also points to an increase in inequality throughout the world, due to the global economic crisis. In almost all OECD countries incomes are in decline, while inequality is on the rise. [Continue reading…]

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