ISRAEL HOUSEHOLD EXPENDITURE SURVEY AND INCOME SURVEY 2004

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ISRAEL HOUSEHOLD EXPENDITURE SURVEY AND INCOME SURVEY 2004 Powered By Docstoc
					ISRAEL HOUSEHOLD
EXPENDITURE SURVEY
AND INCOME SURVEY
2004
                     Statistilite No. 57




Central Bureau
 of Statistics
 Household income*
   In 2004, the gross monthly income of households was NIS 11,220. After
deduction of income tax, National Insurance, and Health Insurance, the income
of households was NIS 8,953, and the income per standard person** - NIS 3,267.

   1. Rate of cumulative change in gross monthly income and in monthly
       household consumption expenditure, in real terms, 1997-2004
       9


       7
   •
       5


       3                                                                                    Income
                                                                                            Expenditure
       1
           ±ππ∑     ±ππ∏     ±πππ      ≤∞∞∞      ≤∞∞±   ≤∞∞≤     ≤∞∞≥   ≤∞∞¥


  77% of the income derives from work, 12% - from allowances and assistance
from institutions in Israel (such as the National Insurance Institute), 7% - from
pensions or provident funds, 2% - from property, and 2% - from other sources.

       2. Monthly income per household, by employment status of
                     household head (hh), NIS, 2004
                     Gross income                                                     Net income
                    13,613    14,679
           11,220                                                                  10,702   11,006
                                                                         8,953
                                         4,575                                                       4,253

            Total    hh an    hh self- hh not                             Total    hh an    hh self- hh not
                    employee employed employed                                    employee employed employed


  87% of the income of households headed by employees, and 85% of the
income of households headed by self-employed persons derives from work. In
households headed by people who are not employed, 53% of the income derives
from allowances and assistance, and 33% - from pensions and provident funds.
  The share of income from work in all households decreased from 98% at the
beginning of the 1960s to 77% today, and the share of income from other sources
(mainly, allowances and assistance) has increased accordingly.
  In 2004, the gross income of households in the highest decile*** was 22.7
times higher than the income of households in the lowest decile. After deduction
of compulsory payments, the gap diminished to 17.2 times.
            3. Gross monthly income per household, by decile, NIS,  2004
  Decile 1 1,550                                 Decile 4     5,717                 Decile 8 14,682
  Decile 2 3,069                                 Decile 5     7,322                 Decile 9 19,462
  Decile 3 4,330                                 Decile 6     9,267                 Decile 10 35,238
                                                 Decile 7   11,574


  From the beginning of the 1990s to 2004, the share of income in the lowest
decile relative to the total income of households declined from 2% to 1.4%, while
the  share  of  income  in  the  highest  decile  increased  from  29%  to  32%.
* In the integrated income survey, data were collected only on money income (current
income from work, property, interest, dividends, subsidies, allowances, and pensions).
** Standard person: the unit in the household whose expenditures were estimated based
on the declining marginal weight of each additional person ***In this pamphlet, decile refers
to deciles based on net money income per standard person.
Income of employees
  Gross monthly income from work of employees in 2004 was NIS 6,972, and
hourly income was NIS 41.30.
  48% of all employees are women. The monthly income of women employees
(NIS 5,337) is 63% of the monthly income of men employees (NIS 8,459).
This gap exists, in part, because women work fewer hours per week than
men (35 hours versus 46 hours, respectively). The gap in hourly income is
smaller than the gap in monthly income (women’s hourly income is 84% of
men’s hourly income).
  4. Gross monthly and hourly income of employees by sex, NIS, 2004
           Monthly income                                                                                              Hourly income
                          8459                                                                                        41.3                          44.2
       6972                                                                                                                           37.2
                                          5357



      Total              Women            Men                                                                       Total           Women           Men


   Men’s monthly income and hourly income are higher than those of women at
all levels of education. The higher the level of education, the greater the gender
gap. Among persons with up to 8 years of schooling, women’s hourly income is
89% of men’s; among those with 16+ years of schooling, women’s income is 77%
of men’s.
                          5. Gross hourly income of employees, by sex
                                and years of schooling, NIS, 2004
                                                                                                                                           65.6
             Total
                                                                                                                             58.7
             Women                                                                                                                  50.3
                                                                                                             45.2
              Men                                                                              41.3
                                                                                                      36.4
                                                                  30.9          32.8
                                   26.0 24.0 26.9                        27.8




                                         ≠†∏                        ±≤≠π                           ±μ≠±≥                       ´±∂
                                                                   Years of Schooling


  Men’s hourly income is also higher than that of women in most occupations.
The gap is largest among agents and workers in sales and services (women’s
income is 73% of men’s income) and smallest among managers (89%) and
unskilled workers (90%).

            6. Gross hourly income of employees, by sex and
                         occupation, NIS, 2004                                                                                                             Total
                  69.8                   71.9                                                                                                              Women
    67.9                   65.4
           62.1
                                  56.4                                                                                                                     Men
                                                                  50.7
                                                    47.4
                                                           44.3                             43.4
                                                                                37.6 35.0
                                                                                                                     31.3                    34.2
                                                                                                       30.5                   29.4
                                                                                                              23.8                    24.8          23.4 21.8 24.4




    Managers                Academic                 Associate     Clerical workers Skilled workers in Agents, sales Unskilled workers
                          professionals          professionals and                   agriculture and    workers and
                                                    technicians                       construction     service workers
Household expenditures
  In 2004, Israeli households spent an average of NIS 10,440 per month on
goods and services.The two largest expenditure items were housing (22.2%)
and transport and communications (20.4%).
  7. Monthly expenditure on consumption per household, by main
     group, NIS and percentages of the total expenditure, 2004
  NIS   2,324
                 NIS   2,130
        22%
                       20%       NIS   1,702
                                        16%         NIS   1,416
                                                          14%        NIS   1,046
                                                                            10%
                                                                                           NIS   519                     414                               NIS   487
                                                                                                                   NIS               NIS   402
                                                                                                  5%                                       4%                    5%
                                                                                                                          4%
    Housing      Transport and         Food          Education,   Dwelling and               Health           Furniture and Clothing and
                                                     culture and   household                                   household                 Miscellaneous
                communications                                                                                                footwear
                                                    entertainment maintenance                                  equipment


   In the past four decades, the share of expenditure for food has declined
(from 42% in the mid-1950s to 16.3% in 2004), as has the share of expenditure
for clothing and footwear (from 12% to 3.8%, respectively). During the same
period, the share of expenditure for housing has increased (from 12% to
22.2%), as has the share of expenditure for transport and communications
(from 3% to 20.4%)
          8. Monthly expenditures of households for selected items,
                 percent of the total expenditure, 1968-2004
                Food                            Transport and                                 Housing                               Clothing and footwear
    28
                                               communications                                               23 22
           22                                                                               21 20
                20                                           20 20
                       17 16                            16
                                                   13                               14
                                               9                                                                                           10
                                                                                                                                                  6    6
                                                                                                                                                                 3     4

       π   ∞        ± ¥                      π   ∞        ± ¥                       π   ∞        ± ¥
    ∏Ø∂ πØ∏ ≤Øπ≥ ≤∞∞ ≤∞∞                  ∏Ø∂ πØ∏ ≤Øπ≥ ≤∞∞ ≤∞∞                   ∏Ø∂ πØ∏ ≤Øπ≥ ≤∞∞ ≤∞∞                                     π   ∞        ± ¥
                                                                                                                                       ∏Ø∂ πØ∏ ≤Øπ≥ ≤∞∞ ≤∞∞
 ±π∂ ±π∑ ±ππ                           ±π∂ ±π∑ ±ππ                            ±π∂ ±π∑ ±ππ                                           ±π∂ ±π∑ ±ππ

  In 2004, the average monthly expenditure for consumption per household
in the highest decile was NIS 17,771 - 3 times the monthly consumption
expenditure of households in the lowest decile (NIS 5,886).

 9. Monthly household expenditure for consumption, by decile, NIS, 2004
                                               Decile       ±                      5,886
                                               Decile       ≤                       6,632
                                               Decile
                                               Decile       ≥                         7,571

                                               Decile       ¥                              8,329
                                               Decile       μ                                    9,581
                                               Decile
                                               Decile       ∂                                      10,290

                                               Decile       ∑                                            11,577

                                               Decile       ∏                                             12,386
                                               Decile
                                               Decile       π                                                     14,389

                                               Decile      ±∞                                                              17,771




10. Monthly expenditure for selected goods and services, by decile, NIS, 2004
                                                   Total                           Decile 1 (Lowest)                                Decile 10 (Highest)
Sports classes                                       29                                            9                                              75
Professional lessons                                 39                                           10                                              75
Tenants’ committee fee                               61                                           24                                             111
Cellphone bill                                      264                                          181                                             379
Bus fare                                             56                                           63                                              22
Cornflakes                                           20                                           11                                              32
Pitta bread                                          20                                           45                                              10
Eating out                                          129                                           41                                             407
Household expenditures (cont’d)
11. Monthly expenditure for selected goods and services, by type of
              locality (selected categories), NIS, 2004
                   Cigarettes and       Public     Cellphone        Computer, Recreation Dental                    Eatin
                      smoking         transport        bill        internet, etc. in Israel treatment
                    accessories                                                                                    g out
Urban localities
Total                  105                107           260             98            90              160           213
Thereof:
Jerusalem               85                151           193             74            84              138           139
Tel Aviv-Jaffa          99                116           249           110             84              126           491
Haifa                   64                101           229             82            74              105           194
Arab localities        228                72            302             93            31              312           173


Rural localities        70                 51           332           116            184              179           249


  Households in Israel do most of their grocery shopping on Thursday and
Friday.
  About half of the food expenditures are in chain stores.

                   12. Expenditures for selected food products,
                            by type of store, %, 2004

           Fresh Fruit and Vegetables                                            Meat, Poultry, and Fish

  Another store 8%                                                       Another store 9%
                                                                      Market 5%
                                      30%
    26%                               Fruit and                                                                     42%
Market                                vegetable store                                                              Butcher




                                    36%                                      44%
                                    Chain store                     Chain store




  19% of the expenditure on entertainment and electronic equipment is not
in stores.

             13. Distribution of expenditures for selected products,
                         by place of purchase, %, 2004
                                           Total        Stores          Catalog/           Internet        Abroad
                                                                       Television                      (incl. duty free
 Home and garden furniture                  100               94             3                2            shops)
                                                                                                               1
 Electrical office equipment                100               88             5                7                0
 Washing machine and dryer                  100               89             2                8                1
 Other electrical home appliances           100               85             5                9                1
 Entertainment and electr. equip.           100               81             2                10               7
 Exercise equipment                         100               93             2                3                3
 Computer and accessories                   100               93             2                5                0
 Jewelry and watches                        100               96             0                0                4
Housing
  In 2004, the average monthly housing expenditure of households was NIS
2,324. The two main components of the housing expenditure were rent (in
rented dwellings) and consumption expenditures for housing services (in owned
dwellings), i.e., the amount of rent that would be required had they rented a
similar dwelling.
  The average monthly expenditure for dwelling and household maintenance
was NIS 1,046. Of that amount, the largest expenditure was for electricity, gas,
and fuel for the dwelling (32%).

       14. Components of monthly expenditure for dwelling and
         household maintenance, NIS and percentages, 2004

       Electricity, gas and fuel for dwelling       nis 331                           8%
                                                                              10%
       Municipal property taxes                     nis 240                                                       32%
       Domestic help                                nis 162
                                                                          12%
       Maintenance and renovation                   nis 130
       Water                                        nis 103
       Miscellaneous                                nis   80
                                                                                15%                          23%



  In 2004, 71% of the households in Israel lived in owned dwellings, 25% lived
in rented dwellings, and the rest lived in key-money dwellings or in free housing.
  The average number of persons per dwelling in Israel was 0.91.

     15. Housing density and percent living in owned dwellings, by
              type of locality (selected categories), 2004
   Average no. of persons per room                                        Percent living in owned dwellings
                               0.91             Urban localities total                          70
                                                Thereof:
                             1.02                 Jerusalem                            57
                                0.79              Tel Aviv-Jaffa                      50
                                0.77              Haifa                                    59
                        1.27                      Arab localities                                    91


                               0.87             Rural localities                                 81




  16. Monthly rent and value of dwelling, by type of locality, NIS, 2004
               Monthly rent, for rented                                    Value of dwelling for owned
                        dwellings, NIS                                     dwellings, NIS 000s
                     1,637                       Urban localities total                     771
                                                 Thereof:
                     1,696                         Jerusalem                                         1,000
            2,408                                  Tel Aviv-Jaffa                                    1,004
                        1,371                      Haifa                                   657
                            1,268                  Arab localities                         710


                    1,850                        Rural localities                                         1,154
            Ownership of durable goods
            Durable goods are products that can be used repeatedly or continuously for
            at least a year. Following technological developments and improvements in
            the standard of living in Israel, some products became an integral part of life
            in Israeli households. Communications products have penetrated households
            at an especially rapid pace.

                  17. Ownership of durable goods in households, %, 1997, 2004
                                                                                                                      ≤∞∞¥   ±ππ∑
              Microwave oven                                       77                                                                                                            55
              Dishwasher                                                                               32                                              25
              Air conditioner                                                66                                                                                            42
              Clothes dryer                                                                           35                                               24
              Video Cassette Recorder                                        65                                                                                                       59
              D.V.D.                                                                                        25
              Cable TV or satellite TV                                  70                                                                                                                 63
              Personal computer                                                   59                                                                             34
              Internet                                                                           41                             5
              At least one cellphone                     84                                                                                                           38
              Two or more celphones                                                         53                                      7
              At least one car                                                         57                                                                                       53
              Two cars or more                                                                                   15                     10




                      18. Ownership of durable goods in households in lowest
                                and highest deciles, %, 1997, 2004
                                                                                                            Upper decile     Lower decile
              Microwave oven                        88                                                                                                                          55
              Dishwasher                                                     64                                                6
              Air conditioner                       89                                                                                                      33
              Clothes dryer                                                       60                                                         16
              Video Cassette Recorde                     84                                                                                                 32
              D.V.D.                                                                             42                                8
              Cable TV or satellite TV              89                                                                                                           36
              Personal computer                               80                                                                                             35
              Internet                                                            59                                                10
              At least one cellphone           94                                                                                                                                               74

              Two or more cellphones                                     66                                                                            28
              At least one car                  91                                                                                                20




                19. Ownership of durable goods in households, by type of locality
                                 (selected categories), %, 2004
                                         VCR             Cable/sate                              DVD             Computer           Internet                                Cellphone
                                                          llite TV
July 2006




              Urban localities
              Total                      65                             70                            24              58                          40                            83
              Thereof:
              Jerusalem                  53                             40                            15              50                          26                            80
              Tel Aviv-Jaffa             68                             80                            26              61                          49                            85
              Haifa                      66                             79                            20              58                          45                            82
              Arab localities            42                             25                            18              47                          14                            84


              Rural localities           73                             73                            34              75                          59                            90
About the surveys
The Household Expenditure Survey is the source of information published
by the Central Bureau of Statistics on patterns of income and expenditures
of households in Israel. In addition, the survey collects information on housing
conditions of households and durable goods at their disposal, as well as on
their demographic and economic characteristics (e.g., number of persons
by decile and number of earners per household).
The survey includes a questionnaire and a biweekly diary, which members
of the household fill out.
From the 1950s until 1997 the survey was conducted about once in every
five years. Since 1997, owing to the rapid pace of economic developments
and the need for updated information on them, the survey has been conducted
once a year.
The Income Survey also serves as a source of information on the income
of households in Israel. It has been conducted annually since 1965, as part
of the Labour Force Survey. As of 1997, the data on income from the
Household Expenditure Survey have been combined with those from the
Income Survey into an Integrated Income Survey.
The Income and Expenditure Surveys cover all households in Israel, i.e.,
about 2 million households (except collective localities and Bedouins living
outside of localities). The sample of the Household Expenditure Survey
includes about 6,000 households, and the sample of the Integrated Income
Survey includes about 14,500 households per year.

Main uses of the data
Determining the “basket” of the Consumer Price Index: Based on the
records in the Household Expenditure Survey, the list of commodities and
services purchased by households (the “basket” of the Consumer Price
Index), and the relative weight of each commodity and service included in
the “basket”, are determined (in 2004, for example, expenditures for food
comprised 16.3% of the “basket”).
Social and economic policy: Data collected in the surveys, for the general
population and for population groups, are the basis for policies set by
government ministries, and for the follow-up of policy implementation. For
example, every year, on the basis of income data, the National Insurance
Institute determines the poverty line and monitors the number of households
that live below and above that line.
Other uses: Extensive use of data from the surveys is also made by private
sector organizations, by researchers, and by the public at large. For example,
the data help to estimate the damage in cases of work accidents, and alimony
in cases of divorce.

Dissemination of the information
Data collected in the surveys, in the form of statistical summaries, are
disseminated via press releases and publications of the CBS. Some of the
data also appear on the CBS website, which provides information free of
charge.

Note: 2004 exchange rate - $1=NIS 4.482

              Edited by: Chani Shamir | Editor of the Statistilite series: Nurit Yaffe
 Tel.: 972-2-6592666 | Fax: 972-2-6521340 | e-mail: info@cbs.gov.il | website: www.cbs.gov.il