The Adva Center's 2026 Social State of the Nation report, published by Calcalist, finds that 82% of all household capital income in Israel goes to the top decile, with 58% concentrated in the top percentile. Israel ranks second among developed nations in the share of low-wage workers and fourth from the bottom in middle-class size. A notable finding: the average salary of Mizrahi employees has surpassed that of Ashkenazi employees.
The Adva Center's 2026 Social State of the Nation report, first reported by Calcalist, paints a stark picture of economic inequality in Israel. The data shows that capital income—earnings from assets rather than labor—is overwhelmingly concentrated at the top. The top decile captures 82% of all household capital income, and the top percentile alone holds 58%.
Beyond capital, the report highlights persistent labor-market disparities. Israel ranks second among developed countries in the proportion of low-wage workers and fourth from the bottom in middle-class size, suggesting a squeezed middle and a large low-income segment. A surprising cross-ethnic finding: the average salary of Mizrahi (Jewish-origin from Middle East/North Africa) employees has now overtaken that of Ashkenazi (European-origin) employees, a reversal of long-standing trends.
The report adds to a series of economic indicators The Zioneer has tracked. Earlier data showed Israel falling to 18th in global average adult wealth and a sharp drop in high-tech workers among Tel Aviv home buyers. The Adva Center's findings underscore structural challenges in income distribution even as aggregate wealth remains high relative to some peers.
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