Inequality

Abstract

Israel was founded on egalitarian principles and, outwardly, there is little sign of extreme wealth or poverty. However, since the 1990s, both income inequality and poverty have grown to the point where Israel has among the highest rates in the developed world. Education and army service, both keys to social mobility in Israel, often fail to serve lower-income groups. Like in other developed countries, growing inequality and poverty came hand in hand with globalization, technological change, and the transition to smaller government. The high-tech industry failed as a counterweight because of its narrow employment base and highly skewed wage structure. On the other hand, Israeli women have made great strides in the last decades as have Russian immigrants and Jews of Asian/North African origin.