The anatomy of changes in poverty and income inequality under rapid inflation: Israel 1979-1984

Lea Achdut, David Bigman

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

During the period from 1979 to 1984, Israel experienced one of the highest rates of inflation in the world which peaked at more than 450 percent annually in 1984. Most incomes were protected, however, from the inpact of inflation by an elaborate system of indexation that included wages, the income tax structure and the social security benefits. Against this background, the year-to-year changes in income inequality and in poverty are analysed. It is shown that despite the spiralling inflation, there have been only small changes in the measures of income inequality through most of the period. In 1984, when the inflation rate tripled, income inequality-measured by the Gini Coefficient-rose by 8.8 percent and the Poverty Gap rose by 19.4 percent.

Original languageEnglish
Pages (from-to)229-243
Number of pages15
JournalStructural Change and Economic Dynamics
Volume2
Issue number1
DOIs
StatePublished - 1 Jan 1991
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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