standard of living in Israel is high and is constantly improving. In 2010 Israel ranked 15th out of 194 nations in the Human Development Index (HDI).^[1] Israel also has one of the highest life expectancies at birth in the world. However, Israel still suffers from poverty with roughly 20.5% of Israeli families living below the poverty line in 2008, most of them Israeli Arab and Haredi Jewish families. According to a study by International Living, Israel has the 47th highest standard of living in the world.^[2]

According to census, Israel's population is 75.5% Jewish, and 19.7% Arab, predominantly Palestinian, as well as Bedouins and Druze. About 4,000 Armenians and 4,000 Circassians live in Israel. There are smaller numbers of people of Jewish heritage or spouses of Jews, non-Arab Christians, and non-Arab Muslims. 4.9% of people are not classified by religion.^[3]

Israel was ranked 47 out of 194 nations in the Annual Standard of Living Index published by the International Living Magazine in 2010. This index is produced by a consideration of "nine categories: cost of living, culture and leisure, economy, environment, freedom, health, infrastructure, safety and risk, and climate, and also its editors opinions"^[2] Each of these is scored on a scale of 0-100, with 100 marking the highest standard. Israel’s lower scores were for infrastructure (36) cost of living (39), economy (61), environment (68) and safety (71). Its higher scores were for freedom (92), health (85), climate (84), and culture and leisure (83).^[2]

Israel was ranked 15th out of 194 nations in the Human Development Index (HDI) 2010 ranking.^[1]

Since its establishment, the State of Israel has declared that adequate housing for all residents is a matter of the highest priority. Massive budgets have been invested in solving housing problems, and construction is one of the country's most important industries.^[4] Residential construction accounts for a large share of the economy in terms of both investment and product. Nearly half of the state's development budget is earmarked for housing. In 1992, residential construction investment consumed 6.2 percent of the GNP.^[4]

Most Israelis live in apartments. According to the Israeli Central Bureau of Statistics, 33% live in three-room apartments, 28% in four-room apartments, and 13% in five-room apartments. CBS statistics also showed that 5% live in one-room apartments, while only 0.6% of Israelis live in a property with eight rooms or more.^[5]

In 2006, it was reported that approximately 3,000 Israelis are known to be homeless. According to the Social Affairs Ministry, 70% of homeless people are childless Soviet immigrants and alcoholics, while the remaining 30% are either homeless due to their economic situation, or were mentally unable to live in a home due to irritation with being surrounded by walls and ceilings. The survey also found that every year, 2,000 families are evicted from their apartments following their inability to repay mortgage payments.^[6]

Israel has a system of universal health care run by private corporations, whereas all citizens are entitled to the same Uniform Benefit Package. All Israeli citizens are required to have membership in one of four privately owned Health Maintenance Organizations, which are heavily regulated by the government and subsidized by taxpayer funds. According to a 2000 study by the World Health Organization, Israel has the 28th best health care system in the world.^[7] Israel has one of the highest life expectancies at birth in the world, ranking 8 out of 224 nations (2009), with an average life expectancy of 80.73.^[8] However, Israel's Arab population has a life expectancy of 75.9 years for males, and 79.7 years for females. Israel's infant mortality rate is also extremely low, with 3.6 per 1,000 live births for Jews, and 8.6 per 1,000 live births for Arabs.^{[citation needed]} Emergency medical services are generally provided by Magen David Adom, Israel's national emergency medical, disaster, ambulance, and blood bank service. In some areas, it is supplemented by Hatzalah and the Palestine Red Crescent Society.

Israel's medical facilities are recognized worldwide for their high standards of health services, top-quality medical resources and research, modern hospital facilities, and an impressive ratio of physicians and specialists to the population. Israeli doctors make NIS 20,000-24,000 (USD $5,000-$6,000) per month.^[7]

Israel’s educational expenditures comprise 6.9% of its GDP (2004), placing Israel 25th out of 182 on the CIA World Factbook’s country comparison of educational expenditures as a percent of GDP.

23.9% of Israel’s adult population (age 25+) has achieved a low attainment level of education, 33.1% has achieved a medium attainment level of education, and 39.7% has achieved a high attainment level of education. Israel’s literacy rate is 97.1% (2004 est.)^[9][10]

Israeli schools are divided into four tracks: public, state-run schools, state-funded yeshivas, Arab schools, and bilingual schools for both Jewish and Arab children. Secondary education prepares students for matriculation exams known as Bagrut. If a student passes, he or she receives a matriculation certificate.

Many Jewish schools in Israel have highly developed special education programs for disabled children, libraries, computers, science laboratories, and film editing studios.^[11]

Typically, after a student graduates, he or she will be conscripted into the Israel Defense Forces, Israel Border Police, or Israel Prison Service, although most Arabs are exempt. A student may, however, request to be drafted at a later date to study at a college or university, or a school known as a Mechina, which prepares them for military or national service. Those who study in a university at this stage do so under a contract in which the Army will pay for their Bachelor's degree, but will extend their service by 2–3 years. Universities generally require a number of matriculation units, a certain grade point average, and a good grade on the Psychometric Entrance Test. Israel currently has eight universities, and a number of smaller colleges. According to Webometrics, six Israeli universities are among the top 100 universities in Asia.^[12]

In 2008, a study found that the average family income for Israel's Jewish majority was NIS 14,157.(USD $3,795) per month, while the average income for Israel's Arab minority was NIS 8,151 (USD $2,185) per month.^{[13][failed verification]}

While the overall standard of living in Israel is rising, a report published by the National Insurance Institute (NII) indicated that poverty in Israel has not shown a commensurate decline.^[14] The majority of poor, however, are not from the Jewish majority, but are Arabs. Many Ultra-Orthodox Jews are also impoverished, though they are heavily isolated from the rest of the country.

Despite Israel being a highly urbanized western country, its poverty levels are still moderately high in comparison with other developed countries.^[15]

During the late Eighties and Nineties, poverty rates in Israel fluctuated (according to one estimate) from 12.8% in 1989 to 18% in 1994, before falling to about 16% in 1997.^[16] The report published by the National Insurance Institute (NII) indicates that poverty levels remained relatively stable in 2006-2007. Roughly 20.5% of Israeli families lived below the poverty line in 2008, a slight increase from the previous year’s 20%. Moreover, 24.7% of Israel’s residents and 35.9% of its children lived in impoverished conditions.^[14]

Data for the 2006-2007 NII survey indicates that 420,000 impoverished families resided in Israel (1.5 million people^[17]), including some 805,000 children. Poverty indicators for families with a single wage-earner have risen from 22.6% during the last NII survey to 23.9% in the current one.^[14] According to a March 2011 report by Adalah, over half of all Arab families in Israel lived in poverty.^[18] Furthermore, of the 40 towns in Israel with the highest unemployment rates, 36 were Arab towns. The total employment rate for Arabs is 68% of the employment rate for Jews. Druze and Christian Arabs have a higher employment rate than do Muslims. Poverty is also high among Israel's Haredi population, which is isolated from the rest of Israeli society.

Israeli newspaper Haaretz's staff comment: "The report also revealed another harsh reality: More and more Israelis are working, and staying poor regardless."^[19]

Israel has 42 designated highways, and an advanced road network which spans over 17,870 kilometers, including over 230 kilometers of highway. Israel Railways is Israel's government-owned railway network, which is responsible for all inter city and suburban passenger railways, and for all freight rail traffic in the country. The network is centered in Israel's densely populated coastal plain, and runs through the entire country. There are also six cable car systems, and 47 airports in Israel, as well as seven seaports. Israel also has 176 kilometers of gas pipelines and 261 kilometers of pipelines for refined products. Buses are the country's main form of public transport, and the country has a popular share taxi service. Jerusalem currently has the country's only tram system - the Jerusalem Light Rail, while a second system, the Tel Aviv Light Rail is currently under construction. Haifa has the country's only subway system - the Carmelit.

Israel has tapped conventional water resources, but relies heavily on reclaimed water treated in the 120 wastewater treatment plants across the country, and desalinated seawater. 57% of water in Israel is for agriculture, 36% for domestic and public use, and 7% for industrial use. Average domestic water consumption in Israel is 250 liters per person per day, which is higher than in most of Europe, but lower than the United States.^[20] According to the Ministry of Environment, 97.9% of all tests of water complied with drinking water standards. Israel also has a modern sanitation system, particularly in major Jewish cities and towns. An estimated 500,000 homes in Israel are not linked to a sewage system, the vast majority of them Arab homes, where waste is expelled into cesspits or the environment.^[21]

Israel is a highly urbanized nation, with 92 percent of its population living in urban areas. To be granted city status, a municipality must have a population of at least 20,000.^[22] There are currently 78 cities in Israel, and 14 of them have populations over 100,000. Other urban municipalities are towns. Towns in Israel are given local council status if they have a population over 2,000.^[23]

In urban areas, most residential areas are separated from industrial and commercial zones, and there are also numerous, well-tended parks and playgrounds within the city or town limits.^[24]

Israelis who live in rural areas primarily live on kibbutzim or moshavim. A kibbutz is a collective communities, where the residents work for the benefit of the community. Although many kibbutzim have been privatized, residents typically live communally. Kibbutzim are for the most part self-sufficient, and have their own schools. Most kibbutzim are agricultural, though some have switched to industry.

A moshav is also a collective community, but the land is divided among the residents, who each receive an equal amount, and must grow their own produce. The community is supported by a collective tax, which is equal for all the residents, thus leaving good farmers better off than bad ones.

A moshava is another type of rural agricultural community in Israel, but unlike kibbutzim or moshavim, all the land is privately owned. A moshav shitufi is another type of cooperative village in Israel, where all production and services are handled collectively, while consumption decisions remain the responsibilities of individual households.

Communal settlements are rural or exurban towns where the entire population is organized in a cooperative, and can veto the sale of any home or property to an undesirable buyer, typically work outside the town, and must pay only a small property tax to sustain the town and its public facilities. Most homes are single-family homes, although some have apartments. Due to the rigorous selection process when selling property, most residents of a communal settlement share a single shared ideology, religious perspective, desired lifestyle, and some will only accept young couples with children. Other Israelis who live in rural areas live in homes and small communities founded by the Jewish National Fund and located in the Negev.

According to the CBS, 71% of Israelis have a computer at home, and 91% surf the Internet. Statistics also show that that an average Israeli family has 2.1 cell phones.^[5]

Some 86.2% of working Israelis are salaried employees, 12.7% are independent, and 1.1% are defined as others. Some 8.5% of Israeli teenagers between the ages of 15 and 18 work. The average Israeli man works 45.2 hours a week, while the average woman works 35.5 hours.^[5]

A large number of Israelis also own private cars, though most Israelis still rely on the country's extensive public transportation network. There are about 316 motor vehicles for every 1,000 people in Israel.

Israel enjoys a booming Film Industry. Israeli Television, Internet services, and Israeli Radio provide entertainment, news, and education.

Average Israeli citizens can afford to take vacations abroad. It is also customary for Israeli youths to go on backpacking trips abroad in groups after completing their military service. However, travel options for Israelis are limited compared to citizens of other Western nations, as Israeli passports are widely banned throughout the Arab and Muslim world.^[25]

• Human Development Index
• Economy of Israel
• Poverty threshold