Thanks Billions!
(Actually More, But We
Lost Count Decades Ago)
Unemployment, Not Inflation
Is Enemy Of The Poor
The rise in Israel's unem-
ployment contributes more
to the inequality of income
distribution than inflation,
according to a new study
released by the Bank of
Israel.
The study, by economist
Momi Dahan of the central
bank's research division,
shows that low-income indi-
viduals bear most of the
brunt of both unemploy-
ment and inflation.
In recent years, unem-
ployment has been the lead-
ing reason for the increas-
ing inequality in income
distribution.
Mr. Dahan notes that the
positive connection between
inflation and income
inequality proves the inabil-
ity of low-income wage
earners to be spared wage
erosion despite cost-of-liv-
ing adjustments.
These agreements have
failed to prevent inequali-
ties from growing as infla-
tion increased.
Michigan's Largest Independently
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Mr. Dahan explains that
while the cost of living
adjustment is the only
means low-income earners
have to mitigate wage ero-
sion, high-income individu-
als benefit from other pro-
tective mechanisms - such
as personal contracts or
strong professional trade
unions.
Mr. Dahan also shows
that transfer payments,
such as National Insurance
Institute allowances, work
to reduce income inequali-
ties. By contrast, expanding
the size of the public sector
increases those inequalities.
The study found the min-
imum wage did not signifi-
cantly reduce the inequali-
ties among wage earners,
despite its intent to mini-
mize those differences.
The opening of the econo-
my after 1967 to workers
from the territories did not
have an impact on income
inequality, the study main-
tains.
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Leading Israeli Stocks
Traded On U.S.
Exchanges
Symbol Name
)
I
Save on All Major Name Brands
Open
\ititte
ntIsti
12-4
Exchange Aug. 20 Aug. 27 Change
SCIXF
Scitex
NASDAQ
8
25.13
'25.50
40.37
ECILF
ECI Telecom
NASDAQ
'41.50
'4725
+'5.75
TEVIY
Teva Pharm
NASDAQ
'25.75
'26.00
4.'0.25
IEC
PEC Israel
NYSE
'25.00
'25.88
+1'0.88
ELBTF
Elbit Computers NASDAQ
'31.75
'34.00
+1.25
ELT
Elscint LTD
'4.88
'5.00
+"0.12
ELRNF
Elron Electronics NASDAQ
'15.13
'16.75
+9.62
NYSE
TAD
Tadiran
NYSE
'29.50
'33.38
+'3.88
CMVT
Comverse
NASDAQ
95.38
'14.63
-1'0.75
LANTF
Lannet Data
NASDAQ
92.13
92.50
+'0.37
Source: Allen Mender, Prudential Securities,
West Bloomfield.
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