Poverty Report: How Much Do People Earn in Other Countries, and Is Israel Really That Poor?

The annual poverty report published this week paints a worrying picture of the poverty situation in Israel. According to the report, almost a quarter of families in Israel live below the poverty line, and the numbers are increasing year by year. But what is behind these numbers, and is Israel indeed poorer than other developed countries?

The Numbers Speak for Themselves

When talking about Israel, it turns out the picture is complex. On one hand, it's an innovative country, with groundbreaking startups and an advanced industry. On the other hand, it's a country facing significant social gaps and high living costs. So where does Israel really stand in terms of salary?

To understand where Israel is positioned in terms of earnings, let's try to examine the average salary in Israel compared to ten leading countries. We'll start with the giants: the United States, Switzerland, and Germany. In these three countries, the average monthly salary is about $5,500, $6,800, and $4,500, respectively, compared to about $2,900 in Israel.

Let's slide east to Japan and Australia. There, too, the average salary is higher, at about $3,800 in Japan and about $5,200 in Australia. On the other hand, when we look west to Canada, we find a similar picture to that of Australia, with an average monthly salary of around $5,000.

And now, let's look down the table. Mexico, India, and Nigeria present a completely different picture. The average monthly salary in these countries is about $1,200 in Mexico, $400 in India, and only $150 in Nigeria.

What Lies Behind the Numbers??

The data presents a clear picture: Israel is in the middle of the table. The average salary in Israel is significantly higher than in developing countries but significantly lower than in developed countries. But, as they say, the real issue lies in the details.

Because the average salary is just one data point, and it doesn't tell the whole story. In Israel, according to the Central Bureau of Statistics, the gap between the top decile and the bottom decile is a factor of 10, indicating significant social gaps. Additionally, the cost of living in Israel is about 20% higher than the average in OECD countries, which reduces the purchasing power of salaries, especially affecting the weaker segments of the population.

There's no doubt that Israel is a developed country with enormous potential. But to realize this potential, it's necessary to address the economic and social challenges it faces. We can look enviously at other countries, but the real way to increase salaries is to move forward and try to reduce gaps, both generally and personally.