1.GENERAL
The 2014 Household Expenditure Survey is the 18thin a series of ongoing surveys that have been conducted by the Central Bureau of Statistics since 1997.
From 1997-2011, the CBS investigated household incomes in two separate surveys: The first was the Household Expenditure Survey (the survey sample included an average of about 6,000 households, annually); the second one was the Income Survey, which was conducted in combination with the quarterly ongoing Labour Force Survey, in which a fourth of the households were asked about their income (the survey sample was an average of about 8,500 households, annually). Data from the two surveys were combined into one system and presented as integrated results. The Integrated Income Survey sample included an average of 14,500 households, annually.
As of 2012, due to the transition of the Labour Force Survey from a quarterly survey to a monthly one, the Income Survey wasremoved from the Labour Force Survey, and instead the Household Expenditure Survey sample was expanded by approximately 3,000 households. In 2014, the sample included 8,465 households.
All the data on expenditures, income and compulsory payments in this publication are based on the Household Expenditure Survey.
As of 2012, in addition to the expansion of the survey’s sample, changes were made in the survey population, in the survey questionnaire, and in survey estimates, as follows:
1.The sample population of the survey was expanded and now includes collective moshavim and renewed kibbutzim (which have engaged in a process of privatization). As a result, the population coverage was increased from about 95% to about 97%. However, the coverage does not include collective kibbutzim and Bedouins.
2.Definition of soldiers in compulsory military service as employees. Until 2012, the income of soldiers in compulsory military service was included in “other income from work”. However, in accordance with the ILO Conventions and Recommendations, the CBS, like most other developed countries, decided to measure the entire labour force instead of the civilian labour force. This was done by adding soldiers in compulsory military service to the labour force in Israel. Following this decision, as of 2012 the income of employeesand income from employed work also includes the income of soldiers in compulsory military service.
3.Augmenting the sample among the Arab population of northern localities. The sample was augmented to provide more reliable estimates of the Arab population.
4.Changing the estimation method. The estimation method is intended to reduce sampling errors as well as biases that can occur due to differences between the characteristics of the households that did not respond to the questionnaire and those that responded. As of 2012, estimation of the population in the Household Expenditure Survey was adjusted to the new structure of the monthly Labour Force Survey.
Most of the changes mainly affect household and individual income. Therefore, as of 2012, there is a break in the series of income data compared with previous years.
As of the 2014 publication, tables on Jewish households by level of religiosity were added (Tables 13, 22, 34, and 35). This was based on a question added to the 2014 survey on the main lifestyle of the household, in terms of religion. The categories were secular, traditional, religious, very religious (for Jews – ultra-Orthodox), mixed lifestyle and “other”.
2.MAIN FINDINGS
The findings are based on a sample of 8,465 households in 245 urban and rural localities, representing 2,372,000 households in the population.
A.Income and Expenditure, by Status at Work of Head of Household and Income Composition (Table 12)
Average monthly gross money income per household, from all sources of income – work, capital, allowances and assistance – was NIS18,329 in 2014. The median gross money income was NIS 13,861. After deducting compulsory payments (income tax, National Insurance, National Health Tax) the average net money income was NIS15,149; the net money income per person was NIS 4,630 per month and the net money income per standard person, which is accepted as a measure of the standard of living, amounted to NIS 5,602 per month. Income from work (NIS 14,190) was 77.4% of the money income of households in 2014, and 11.1% (NIS2,037) was from allowance and assistance.
The average consumption expenditure, which includes an estimate on expenditure for housing services and an owned vehicle, totaled NIS15,053a month in 2014. The average money expenditure per month was NIS 12,023 – 80% of the net money income per household. The average number of persons in a household was 3.3, and the average number of earners per household was 1.5.
Gross money income of households in which the head of household is an employee was an average of NIS20,916 per month per household in 2014. Less compulsory payments, the net money income for households of employees was NIS17,126. The average age of the head of the household in households headed by an employee was 41.2, the average number of persons per household was 3.6 and the number of earners was 1.9 per household. Money expenditure of these households comprised 76.6% of net money income per household (NIS13,111 monthly expenditure compared to NIS17,126 net money income).
Gross money income of households in which the head of household is self-employed was an average of NIS21,694 per month per household in 2014. Less compulsory payments, the net money income for households of the self-employed was NIS17,320. The average age of the head of the household in households headed by a self-employed person was 46.3, the average number of persons per household was 3.6 and the average number of earners was 1.8 per household.
In 2014, 59.2% of the money income of households headed by a self-employed person originated from income from self-employmentand occasional work (NIS 12,849) and 24.6% from income from wages and salaries (NIS5,330). Money expenditure of these households comprised 83.4% of net money income per household (NIS 14,446 monthly expenditure compared to NIS 17,320 net money income).
Gross money income of households in which the head of household is not working was an average of NIS 7,900 per month per household in 2014. The net money income per household was NIS 7,398. This income comprises 43.1% of the net money income of households headed by employees and 42.7% of the net money income of households headed by self-employed persons. The average age of the head of the household was 66.8, the average number of persons per household was 2.0.
Table A. – Average Monthly Income and Expenditure of Households, by Status at Work of Head of Household and by Source of Income
2014
Headed by / Headed by / Headed by / Households
Non-Working Person / Self-Employed Person / Employee
1,834 / 878 / 5,753 / 8,465 / Households in sample
487.3 / 265.5 / 1,618.8 / 2,371.6 / Households in population (thousands)
2.0 / 3.6 / 3.6 / 3.3 / Average persons in household
66.8 / 46.3 / 41.2 / 47.0 / Average age of head of household
0.0 / 1.8 / 1.9 / 1.5 / Average earners in household
NIS
5,537 / 17,377 / 16,276 / 13,861 / Median of gross money income
per household
7,900 / 21,694 / 20,916 / 18,329 / Gross money income per household
7,398 / 17,320 / 17,126 / 15,149 / Net money income per household
3,925 / 5,979 / 5,866 / 5,602 / Net money income per standard person
7,087 / 14,446 / 13,111 / 12,023 / Money expenditure per household
Percentages
100.0 / 100.0 / 100.0 / 100.0 / Gross money income per household
0.9 / 83.8 / 85.0 / 77.4 / Income from work - total
0.0 / 24.6 / 81.4 / 66.6 / Income from wages and salaries
0.9 / 59.2 / 3.6 / 10.8 / Income from self-employment
and occasional work
99.1 / 16.2 / 15.0 / 22.6 / Income not from work – total
8.3 / 5.5 / 3.7 / 4.3 / Income fromcapital
40.7 / 4.1 / 3.8 / 7.1 / From pensions and provident funds
50.2 / 6.6 / 7.4 / 11.1 / From allowances and assistance
Thereof:
39.4 / 4.7 / 5.4 / 8.3 / From allowances from National
Insurance Institute
B.Income and Expenditure by Level of Religiosity and Income Composition (Table 13)
Average monthly gross money income in Jewish households was NIS19,699 in 2014 and the average monthly money expenditure was NIS 12,233. The average number of persons in these households was 3.1 and the average number of earners per household was 1.5 (about half of the Jewish households described themselves as secular).
In self defined secular households the income was the highest and the number of persons was the lowest – the average monthly gross money income was NIS 21,835. Less compulsory payments, the net money income per household was NIS17,513. The average number of persons per household was 2.7 and the net income per standard person was NIS 7,358 per month.
The income was the lowest among self defined ultra-Orthodox households and the number of persons in these households was the highest. The average monthly gross money income was NIS 11,831. Less compulsory payments, the net money income per household was NIS10,657. The average number of persons per household was 5.3 and the net income per standard person was NIS 2,808 per month, which was only 38.2% of the equivalent income for secular households. The average number of earners was 1.3 earners.
The composition of income in ultra-Orthodox households was 68.3% from work, 24.5% from allowances and assistance (of which 11.8% was allowances from the National Insurance Institute), and 2.8% from pensions and provident funds. In secular households the income composition was 78.3% from work, 10.8% from allowances and assistance, and 7.7% from pensions and provident funds.
Table B. – Average Monthly Income and Expenditure of Jewish Households,
By Self Defined Level of Religiosity and by Source of Income
2014
4200. / 5980. / 7680. / 1,6910. / 3,4960. / 6,9730. / Households in sample – total
117.7 / 131.5 / 213.3 / 488.9 / 1,011.5 / 1,963.0 / Households in population (thousands)
3.3 / 5.3 / 3.6 / 3.1 / 2.7 / 3.1 / Average persons in household
46.4 / 39.1 / 48.2 / 48.9 / 48.3 / 47.7 / Average age of head of household
1.6 / 1.3 / 1.5 / 1.6 / 1.5 / 1.5 / Average earners in household
NIS
14,505 / 9,825 / 14,270 / 14,883 / 17,000 / 15,230 / Median of gross money income per household
18,747 / 11,831 / 18,282 / 18,245 / 21,835 / 19,699 / Gross money income per household
15,417 / 10,657 / 15,321 / 15,498 / 17,513 / 16,188 / Net money income per household
5,665 / 2,808 / 5,345 / 5,908 / 7,358 / 6,205 / Net money income per standard person
11,763 / 9,871 / 11,854 / 11,583 / 12,989 / 12,233 / Money expenditure per household
Percentages
100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / Gross money income per household
78.6 / 68.3 / 73.8 / 75.1 / 78.3 / 76.8 / Income from work – total
21.4 / 31.7 / 26.2 / 24.9 / 21.7 / 23.2 / Income not from work – total
5.1 / 4.4 / 4.7 / 4.8 / 4.7 / 4.7 / From capital
5.5 / 2.8 / 9.6 / 8.3 / 7.7 / 7.7 / From pensions and provident funds
10.8 / 24.5 / 11.9 / 11.7 / 9.2 / 10.8 / From allowances and assistance
Thereof:
8.3 / 11.8 / 9.7 / 9.2 / 6.5 / 7.8 / From National Insurance Institute allowances
C.Composition of Consumption Expenditure
The average expenditure on the basket of household goods and servicesamounted toNIS15,053 a monthin 2014, an increase of 3.3% in real terms, compared with the consumption expenditure in 2013(NIS14,501 a month).
The main components of the basket were: "Housing" – NIS 3,692 per month, 24.5% of the basket (23.7% in 2013); "Transport and communications" – NIS 2,984 per month, 19.8% of the basket (20.0% in 2013); "Food" (including "Vegetables and fruit") –NIS 2,435 per month, 16.2% of the basket (16.7% in 2013); "Education, culture and entertainment" – NIS 1,820 per month, 12.1% of the basket (12.1% also in 2013).
Table C.- Composition of Consumption Expenditure per Household
2013-2014
Percentages1 / Change in prices
Percent-ages2 / Real change
Percent-ages3
NIS per month / Percent-ages / NIS per month / Percent-ages
Consumption
expenditure - total / 14,501 / 100.0 / 15,053 / 100.0 / 3.8 / 0.5 / 3.3
Food / 1,974 / 13.6 / 1,974 / 13.1 / 0.0 / 0.7- / 0.7
Vegetables and fruit / 450 / 3.1 / 461 / 3.1 / 2.5 / 0.4- / 2.9
Housing / 3,429 / 23.7 / 3,692 / 24.5 / 7.7 / 2.5 / 5.0
Dwelling
maintenance / 1,433 / 9.9 / 1,450 / 9.6 / 1.2 / 1.3 / 0.2-
Furniture and
household
equipment / 550 / 3.8 / 582 / 3.9 / 5.8 / 3.3- / 9.4
Clothing and footwear / 459 / 3.2 / 499 / 3.3 / 8.6 / 0.9- / 9.7
Health / 827 / 5.7 / 884 / 5.9 / 6.8 / 0.6 / 6.1
Education, culture
and entertainment / 1,762 / 12.1 / 1,820 / 12.1 / 3.3 / 1.3 / 2.0
Transportand
communications / 2,898 / 20.0 / 2,984 / 19.8 / 2.9 / 1.3- / 4.3
Miscellaneous
goodsand services / 718 / 4.9 / 707 / 4.7 / 1.4- / 1.4 / 2.8-
1.The change in expenditures between 2013 and 2014 (NIS), in percentages.
2.The percentile change in prices according to the index of the group, between 2013 and 2014.
3.The percentile change in expenditure less the change in prices.
D.Composition of the Consumption Expenditure over Years (Table 1.2)
During the past five decades the share of expenditure on food has dropped from 42% of the consumption basket in the 1950s, to 16.2% of the consumption basket in 2014.
The percentage of expenditure on housing increased from 1997 to 2014by2.4 percentage points.
The percentage of expenditure on health increased gradually over the years – an increase of approximately 2.1 percentage points from 1997 to 2014.
TableD.- Composition of Consumption Expenditure per Household,
Selected Years
NIS
Consumption expenditure -
total - current prices / 8,110 / 9,345 / 10,053 / 10,139 / 10,816 / 11,584 / 13,009 / 13,967 / 14,501 / 15,053
Fixed prices for 2014 / 12,072 / 12,542 / 13,194 / 12,507 / 13,222 / 13,798 / 14,339 / 14,491 / 14,570 / 15,053
Percentages
Consumption expenditure
- total / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0
Food (Incl. vegetablesand fruit) / 17.9 / 17.3 / 16.9 / 16.8 / 16.3 / 16.9 / 16.3 / 16.1 / 16.7 / 16.2
Housing / 22.1 / 22.7 / 22.6 / 22.8 / 21.9 / 22.3 / 24.4 / 25.1 / 23.7 / 24.5
Dwelling maintenance / 9.0 / 9.3 / 9.3 / 10.0 / 10.4 / 10.1 / 9.7 / 9.4 / 9.9 / 9.6
Furniture and household
equipment / 5.6 / 5.6 / 4.9 / 4.1 / 3.9 / 3.9 / 3.7 / 4.1 / 3.8 / 3.9
Clothing and footwear / 4.7 / 3.3 / 3.2 / 3.7 / 3.6 / 3.4 / 3.2 / 3.1 / 3.2 / 3.3
Health / 3.8 / 4.1 / 4.9 / 4.8 / 5.1 / 5.3 / 5.2 / 5.3 / 5.7 / 5.9
Education, culture andentertainment / 13.2 / 13.5 / 13.4 / 13.5 / 13.5 / 13.3 / 13.5 / 12.3 / 12.1 / 12.1
Transport andcommunications / 19.0 / 19.6 / 20.1 / 19.8 / 20.4 / 20.1 / 19.5 / 20.1 / 20.0 / 19.8
Miscellaneous goods
and services / 4.7 / 4.6 / 4.7 / 4.5 / 4.9 / 4.7 / 4.4 / 4.5 / 4.9 / 4.7
E.Consumption Expenditure by Quintiles (Table 1.1)
Income data are used as explanatory variables for the distribution of household expenditures by various income groups, such as income deciles and income quintiles.
The distribution of households by quintiles of net income per standard person indicates thatthe money income for a household in the upper quintile (NIS 29,305 per month) was 5.2 times more than that of the lowest quintile (NIS 5,582 per month), and the monthly consumption expenditure per household in the upper quintile (NIS 22,424) was 2.3 times higher than in the lower quintile (NIS 9,630). Among households in the upper quintile, the average number of persons was 2.7, and the average number of earners was 1.7 earners, whereas larger households were concentrated in the lower quintile – an average of 4.0 persons and 0.9 earners per household.
Due to the significant differences between the quintiles in total household expenditures on the one hand, and in household size on the other, the expenditure per person in the upper quintile was 3.5 times more than the expenditure per person in the lower quintile.
In the lower quintile, 50.5% of the total expenditures were for basic goods such as food, housing, clothing, and footwear; in the upper quintile, the percentage of the expenditures on these basic goods was lower (39.5%).
In the upper quintile, the monthly expenditure on food, including fruit and vegetables (NIS3,077 per household) was 13.7% of the total household expenditure. In contrast, the monthly expenditure on food including fruit and vegetables in the lower quintile (NIS2,118) was 22.0% of the total household expenditure.
An additional difference in the expenditure can be found in the item "Meals away from home". Households in the upper quintile spent NIS802 a month on this item – 4.6 times more than the monthly expenditure of households in the lower quintile on this item (NIS 175).
Table E.- Monthly Consumption Expenditure of Quintiles of Households,
by Net Income per Standard Person
2014
Persons in household
Earners in household / 3.3
1.5 / 4.0
0.9 / 3.2
1.7 / 2.7
1.7
Net money income
per household (NIS)
Money expenditure
per household (NIS) / 15,149
12,023 / 5,582
8,212 / 13,375
11,470 / 29,305
17,414
Consumption group / NIS per month / Percent-ages / NIS per month / Percent-ages / NIS per month / Percent-ages / NIS per month / Percent-ages
Consumption expenditure –
total / 15,053 / 100.0 / 9,630 / 100.0 / 14,304 / 100.0 / 22,424 / 100.0
Food (Incl. vegetables
and fruit) / 2,435 / 16.2 / 2,118 / 22.0 / 2,278 / 15.9 / 3,077 / 13.7
Housing / 3,692 / 24.5 / 2,372 / 24.6 / 3,621 / 25.3 / 5,099 / 22.8
Dwelling maintenance / 1,450 / 9.6 / 923 / 9.6 / 1,384 / 9.7 / 2,185 / 9.7
Furniture and
household equipment / 582 / 3.9 / 419 / 4.3 / 540 / 3.8 / 843 / 3.8
Clothing and footwear / 499 / 3.3 / 378 / 3.9 / 497 / 3.5 / 649 / 3.0
Health / 884 / 5.9 / 429 / 4.5 / 869 / 6.1 / 1,441 / 6.4
Education, culture
and entertainment / 1,820 / 12.1 / 1,079 / 11.2 / 1,808 / 12.6 / 2,538 / 11.3
Transport and
communications / 2,984 / 19.8 / 1,339 / 13.9 / 2,679 / 18.7 / 5,571 / 24.8
Miscellaneous goods
and services / 707 / 4.7 / 573 / 6.0 / 629 / 4.4 / 1,019 / 4.5
The greatest difference between the upper and lower quintiles was in the item “Transport and communications”. For this item, the monthly expenditure in the upper quintile was NIS5,571 – 4.2 times higher than the expenditure in the lower quintile (NIS 1,339).
The item “Transport and communications” included several expenditure groups in which the difference between the quintiles was especially large. In the upper quintile, rides on public transport comprised only 1.4% of the households’ Transport and Communications expenditure, compared with 8.8% in the lower quintile (NIS 80 compared with NIS 118 per month, respectively); expenditures in “travel abroad” comprised 25.4% of the total expenditure for “Transport and communications”of households in the upper quintile, compared with 11.1% among households in the lower quintile (NIS 1,415 compared with NIS 149 per month, respectively).
Households in the upper quintile spent NIS2,538 per month on “Education, culture and entertainment” – approximately 2.5 times more than households in the lower quintile (NIS1,079).
The expenditure on education services (tuition, courses, extracurricular activities and supplementary lessons) totaled NIS 1,028 per month among households in the upper quintile – approximately 2 times more than the monthly expenditure on that item among households in the lower quintile (NIS 591 per month).
F.Income and Expenditure by Deciles (Tables 2, 3 and 4)
In a distribution of households by deciles of net money income per standard person, it was found that the money expenditure of households in the three lowest deciles was higher than their income. (The survey's income data do not include non-recurring income such as inheritance and withdrawals from savings plans. Furthermore, only the money income reported to the interviewer is included, whereas benefits "in kind", such as discounts for education and municipal tax, are not included).
From the fourth decile on, income gradually exceeds expenditure. While in the fourth decile itself the difference between income and expenditures is small (a difference of 2.0%), in the upper decile the difference between income and expenditure is very high – 47.5%.
In 2014, the average gross money income of households was NIS18,329 per month, compared with NIS17,711 in 2013 – a real increase of 3.0%.
The gross money income of households in the upper decile was NIS 49,365 per month, compared with NIS4,270 per month in the lower decile – 11.6 times more.
Nearly half of the monthly income of households in the lower decile originated in allowances and assistance (46.3% of total income), and 51.8% was from work. In the upper decile, on the other hand, 5.3% of income was from allowances and assistance and 75.2% of income was from work.
Table F.- Monthly Income of Deciles of Households,
by Net Income per Standard Person
2014
1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10
NIS
Net money income
per household / 15,149 / 3,967 / 5,964 / 8,207 / 10,383 / 12,249 / 14,516 / 16,898 / 19,571 / 23,403 / 36,355
Money expenditure
per household / 12,023 / 7,538 / 7,670 / 8,569 / 10,150 / 11,021 / 12,204 / 13,301 / 14,120 / 16,057 / 19,068
Gross money
income - total / 18,329 / 4,270 / 6,399 / 8,880 / 11,446 / 13,755 / 16,554 / 19,777 / 23,693 / 29,183 / 49,365
Percentages
Gross money income - total / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0 / 100.0From work / 77.5 / 51.8 / 58.9 / 69.7 / 75.3 / 79.4 / 80.5 / 82.8 / 83.4 / 80.9 / 75.2
From capital / 4.3 / 1.1 / 1.2 / 1.6 / 1.4 / 2.2 / 2.1 / 2.5 / 3.0 / 3.6 / 9.4
From pensions and
provident funds / 7.1 / 0.8 / 1.5 / 3.6 / 4.2 / 4.7 / 6.1 / 6.2 / 6.9 / 9.0 / 10.1
From allowances
and assistance / 11.1 / 46.3 / 38.4 / 25.1 / 19.1 / 13.7 / 11.3 / 8.5 / 6.7 / 6.5 / 5.3
G.Income and Expenditure by Number of Earners (Table 7)