Poverty Report

Poverty report

The rate of poverty in Israel is one of the highest amongst OECD members and continues to climb in recent years.

IEP Research in collaboration with Economic Models Ltd. wishes to get to the economic roots of the phenomenon of poverty in Israel and create a database of insights, tracing the outline to the solution.

Our findings show that the proper treatment should focus on ultra-Orthodox and Arab populations, who absorb most of gravity of the problem of poverty. 

Our solutions are as follows:

1.     Replacing the “universal benefits” with an extension of school hours and benefits to increase labor force participation`

2.     Cancellation of VAT on basic food items;

3.     Imposing an annual reporting requirement on income per population in Israel in a way that will increase transparency and help a just distribution of government assistance;

4.     Reducing employment of foreign workers and encouraging local employment;

5.     Imposing an obligatory actuarial pension to eradicate the problem of poverty in the adult population.

IEP believes that these recommendations will assist in encouraging employment and education and as a result will reduce the number of poor households in Israel. 

The Effect of Demographic Composition on Welfare